Demand from AP, Karnataka propels power purchase in southern region

The volume of power bought by Southern region in the Indian Energy Exchange increased 160 percent year on year in September 2016, driven by higher demand from Andhra Pradesh and Karnataka, data from the exchange reveals.

Indian Energy Exchange, regulated by the Central Electricity Regulatory Commission, is a power trading platform similar to a stock exchange. The exchange has 4,000 participants from across India, more than 1,000 private generators and 3,500 open access consumers.

Data from the exchange shows that among the States in the region, Tamil Nadu and Kerala sold more power, while Andhra Pradesh and Karnataka bought more power.

Tamil Nadu and Kerala put together sold 77 million units in September 2016 compared with 13 million units in the comparable period last year.

Both the States in total bought 70 million units in September 2016 compared with 88 million units in the same period last year.

Andhra Pradesh and Karnataka bought 642 million units and sold 259 million units respectively in September 2016.

In the comparable period last year, they bought 184 million units and sold 265 million units.

Wind energy boost

“Tamil Nadu had good power availability helped by wind power generation and supply from Kudankulam. That is why the buying volume was low. Because of higher power availability, the prices were also low,” an exchange official told The Hindu. The official also said the deficits and surplus power trades in the exchange were matched within the southern region in some cases. “We don’t monitor sales from the exchange. The private producers whom we discontinued from May 31 might have traded on exchanges. The government also amended Section 11 of the Electricity Act to allow the sale of power to other States,” a senior TANGEDCO official said.

Southern region power rates on the exchange were Rs. 2.41 per kilo watt hour during September 2016, down from Rs. 6.18 per kilo watt hour in the same period last year. In September 2016, northern region rates stood at Rs. 2.73 per unit, while rates of North-East, East and West stood at Rs. 2.35 per unit.

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