At Orissamatters, we have elaborately discussed electricity matters in Orissa. The state is in the verge of power famine. Now the scenario is being discussed by three leading experts. We invite you to the critical discourse.
Shri Nagendra Nath Mahapatra
Senior Consultant, OERC
Shri Manas Kumar Das
GM,Reliance Energy Trading
Miss Sandhyarani Behera, CESU
0.1. Trading in general has been defined as a business / commercial transaction especially those of buying and selling of commodities / products. As per Sec – 2(71) of Electricity Act, 2003, Power Trading means purchase of electricity for resale thereof. Power Trading has been recognized as a distinct licensed activity as per Sec -12 and Sec – 14 of the Act and has been added as a core function in Indian Power Sector from the very date of promulgation of Electricity Act, 2003 i.e. since 10th June, 2003.
0.1. The very concept of Power Trading may seem odd in a power deficit country like India where as per Economic Survey conducted by Planning Commission, the deficit in Peak shortage is steadily rising from 12.2% in FY 2002-03 and may touch a record high of 20% of in 2012 as per Mckinsey Report. There is huge scope in Power trading in India due to leveraging on seasonal and time-of-the day fluctuations in different regions, apart from medium term mismatches as the available capacity in India are underutilized as illustrated in Tabel -1: