‘Trading volume growing at 36% annually’
During the current year, the weighted price of power sold through power exchanges was slightly lower than the price of power traded through bilateral transactions. The volume of power traded through bilateral arrangements increased by 40% and through power exchange about 17% as compared to 2010-11. The long-term market decreased from 89.92% to 88.5%, indicating a growth in the short-term market over the long-term market.
What is your outlook on power market growth over the next five years?
The power market would continue to evolve as more producers sell their power in the free market. Further, the evolution of the market has taken place with the government’s thrust on renewable energy sources as part of the National Action Plan on Climate Change (NAPCC), launched in June 2008.
The JNNSM has envisaged developing 20 Giga Watt of solar power generation capacity by 2022. In addition, states are setting up solar power projects on their own. This will reduce the dependence on fossil fuel-based power generation. Further, with purchase of renewable power becoming mandatory, the market is set to see a revolution in the use of renewable energy and a change in the power mix scenario.
The long-term outlook of the Indian power market is bright. Policy steps taken to improve the financial health of discoms will take two-to-three years to show results. Per capita electricity consumption will go up to 900-1,000 units a year by the end of 2013, from 778 units in 2009-10. These
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