Power Trading / Open Access
Power Trading / Open Access allows consumers to purchase electricity directly from power generators or energy exchanges. This increases the competition in the market and it ultimately benefits the consumers. Open Access bridges the gap between Deficit energy and Surplus energy. This not only reduces staggering but also improves the electricity distribution scenario.
Open access allows consumers to avail electricity through the already existing infrastructure of State utilities (open access charges need to be paid). Many states including Punjab, Haryana, Gujarat, Chatisgarh have already implemented this policy wherein bulk consumers have been given permission to purchase electricity through open access.
Types of Open Accessa) Depending upon Duration of Transactions :
- SHORT TERM : contracts exceeding 1 month but less than 6 months.
- MEDIUM TERM : contracts exceeding 3 months but less than 3 years.
- LONG TERM : contracts exceeding 12 years but less than 25 years.
b) Depending upon the energy trading platform :
- I. Collective (Through Exchanges) : Electricity can be purchased directly from the two energy exchanges in India through trading members of the Exchange. The two energy exchanges are IEX(Indian Energy Exchange) & the PXIL (Power Exchange of India Ltd.). This also permits collective buying & selling through the process of bidding.
- II. Bilateral Contracts / OTC : In these transactions, Electricity can be directly purchased from specified power generators (CPPs, IPPs, MPPs) by a specified Buyer. The specific point of injection and point of drawal can be fixed mutually. Varying quantum of power (MW) can be taken for any time period during a month. To facilitate this, CERC has issued licenses to Power Traders to ensure smooth operations of these contracts.
Statutory Requirements for Trading Power :
- Demand should be atleast 1000KVAH.
- Connected to atleast 11KV line.
- Should have .2S class CT/PT.
- Should have .2S class ABT meter.
- Consent from Discom/SLDC to trade power.
Different types of power sources are available in the market. Green Power has been gaining relevance in the power scenario in India with rise in Green Energy Portfolio. The major reason for this is implementation of Renewable Energy Certificates (REC's). and Renewable Power Purchase Obligation (RPPO). Consumers can directly purchase power from Renewable sources and, hence, contribute to environment protection through Carbon Emission Reduction and become responsible Citizens. Large MNCs have been using green energy in their power portfolio to meet their sustainability criteria.