Experts say 10-15% power capacity must for India short-term trade

[K.Karthik Raja]

Experts say 10-15% power capacity must for India short-term trade

NEW DELHI - India's electricity system must have 10-15% capacity
that is not tied to long-term purchase agreements to enable short-term
trading, according to industry officials gathered here at a sector
summit.
"There has to be reasonable amount of electricity in the system
that is off the power purchase agreement," R.V. Shahi, former power
secretary and advisory board member, Indian Energy Exchange said
today.
Indian Energy Exchange is promoted by Multi Commodities Exchange.
Shahi said it is imperative that power plants are developed on
merchant basis for a platform like the IEX to succeed.
PTC India Ltd. Chairman and Managing Director T.N. Thakur agreed
with Shahi when he said, "There is no merchant power capacity in the
market except the Malana power capacity."
The 86MW Malana hydroelectric power project is located on the
Malana Nallah, a tributary of Parbati River in Kullu district of
Himachal Pradesh.
Currently, only 3% of the electricity generated in the country is
traded as opposed to 25-30% in developed countries, said Joesph
Massey, director, IEC and deputy MD, MCX.
Shahi said 30% of additional capacity is being planned for
transmission system and this will help trading of electricity.
Massey said IEX would be launched in a 'couple of months'.
The current Eleventh Five-Year Plan (Apr 2007-Mar 2012) seeks to
add 1,04,569 MW in power generation capacity, excluding slippages of
about 9,500 MW from the Xth Plan.
Out of the targeted 1,04,569 MW capacity addition, 69,069MW is
proposed to be added by independent power producers, 25,500MW through
captive power generation and 10,000MW by merchant power producers.

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