24-10-2014, 10:27 AM
Abstracts: Energy Exchange and Power Trading are new concept in India. It is therefore natural that many of us have questions about it. Restructuring of the power industry aims at abolishing the monopoly in the generation and trading sectors, thereby, introducing competition at various levels wherever it is possible. Generating companies may enter into contracts to supply the generated power to the power dealers/distributors or bulk consumers or sell the power in a pool in which the power brokers and customers also participate. In a power-exchange, the buyers can bid for their demands along with their willingness to pay. Power generation and trading will, thus, become free from the conventional regulations and become competitive. Electricity sector restructuring, also popularly known as deregulation is expected to draw private investment, increase efficiency, promote technical growth and improve customer satisfaction as different parties compete with each other to win their market share and remain in business. Open access is the key to a free and fair electricity market. Power producers (sellers) and dealers/customers (buyers) have to share a common transmission network for wheeling the power from the point of generation to the point of consumption.