Short-term power market to grow in coming days, says CERC Chairperson Pujari

Share of the short-term electricity market will grow in future with lesser fructification of long-term power purchase agreements, Central Electricity Regulatory Commission (CERC) Chairperson P K Pujari said on Wednesday.

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In short-term market, consumers like captive users or discoms buy power either at energy exchanges or directly from generating firms (gencos) under open access. This is different from conventional PPAs where consumers buy electricity for a term as long as 25 years.

"I don't think long-term PPAs will fructify in future. I think the share of short-term electricity market will grow...It is no way that long term PPAs will meet 100 per cent demand," Pujari said at a virtual programme, ?Know Your Regulator' organised mainly by the Centre for Policy Research.

Pujari was talking in view of the dynamic power scenario where consumers have access to different short-term market products like real time market, day ahead market and term ahead market, among others.

Last year in June, real time market (RTM) was launched where consumers, including distribution companies (discoms) and captive users, can buy power on exchanges just an hour before delivery.

Pujari stated that currently the short-term market share ranges from 6-7 seven per cent which would grow in future.

He was also of the view that power sector regulators (central and state) would have to be ready with the framework for short-term products like for three months (of power supply) or so.

At present, India has two power exchanges -- Indian Energy Exchange and Power Exchange of India Ltd -- where power trading is done. Some more exchanges are expected to enter the market in future.