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Wednesday, May 22, 2024

Government urges states to sell excess power in the market

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In Short:

As temperature rises, there is a higher need for electricity. Power Ministry has asked States to ensure power generating companies offer extra power in the market for areas with shortages. Some generators are not doing this, causing unused power nationally. Guidelines were issued to ensure optimal use of power plants. Compliances need to be monitored regularly. Power demand expected to increase in upcoming months.


Making Sure Every Watt Counts!

With the mercury rising and demand for electricity surging, the Power Ministry has a crucial message for the States – Utilize the surplus power!

The Power Market Buzz

The Ministry emphasized the need for power stations to be always ready to dispatch power, as per the Tariff Policy 2016. Generators have the green light to sell surplus power in the market to ensure optimal utilization, especially as India braces for the peak power demand season from April to June.

During the last week, peak power demand hit 212.70 GW, with expectations of a further rise in the coming weeks. The Ministry is keeping a close eye on compliance to ensure that all thermal generating stations offer their surplus power in the power exchanges.

Utilizing Un-requisitioned Power

In a move to optimize the utilization of generating stations, the Ministry issued guidelines last year. Additionally, rules amended in 2024 allow for the sale of surplus power within the declared generation capacity but not requisitioned by distribution companies.

Clearing the FSA Confusion

The Ministry addressed concerns raised by power utilities regarding existing Fuel Supply Agreements (FSAs), clarifying that generating companies can offer un-requisitioned surplus power in the market, in line with the Tariff Policy and relevant rules.

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