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Home News Power Sector News AP and Tamil Nadu buys power from exchanges for Rs.12 per unit

AP and Tamil Nadu buys power from exchanges for Rs.12 per unit

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Jayant DeoJayant Deo, MD and CEO of IEX told The media that states of Andhra Pradesh and Tamil Nadu are the highest buyers of power now at the exchange and the rate of purchase is nearly Rs 12 per unit. These states did not have a good monsoon last year. Winter was also not severe and hence the demand for power has risen considerably, says Deo.

Even as the southern states have created a record of sorts by buying a daily 12,000 -13,000 megawatt hours of power from the Indian Energy Exchange(IEX) the situation will ease by mid-May, says Jayant Deo, MD and CEO of IEX.

However the situation will not last long he says. In Tamil Nadu which has a considerable amount of wind power, the situation will ease by May as the state draws at least 3,900 MW of wind power.

Moreover with gas allocation to the power sector at least 1,700 to 1800 gas plants should be functional by then says Deo. However presently these states have the highest purchasing capacity at the exchange. This has rendered players like Tata Power Company (TPC) unable to bring in more power as they have a ceiling limit of Rs 8.40.

In Pune, for instance there has been no relief from loadshedding for three to four days as the TPC was unable to purchase power.

Says Pradeep Bhargava, chairman of the Western region of the Confederation of Indian Industries (CII), it is likely that due to the forthcoming elections most states have decided to purchase power at whatever price.

Hence the availability of power gets limited at the exchange with several states buying substantial amount of power, he reasons.

Source - Indian Express

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