Singareni Collieries gets Indian Energy Exchange membership; To soon sell surplus power in open market
SCCL has joined the Indian Energy Exchange (IEX), enabling it to sell surplus electricity generated from thermal and solar plants. The move is expected to boost revenue and improve power utilization with State government support
Peddapalli: The Singareni Collieries Company Limited (SCCL) has achieved a major milestone by securing membership in the Indian Energy Exchange (IEX).
The IEX, regulated by the Central Electricity Regulatory Commission, facilitates power trading in the open market. With this development, SCCL now has the opportunity to sell its surplus electricity in the open market. The State government has also given its nod to the move.
Singareni, which initially focused on coal production, later ventured into power generation and currently produces 1,445 MW of electricity through its thermal and solar plants.
While 1,200 MW of thermal power is generated at the Singareni Thermal Power Plant in Jaipur, Mancherial district, the remaining 245 MW of solar power comes from units established in various parts of the company’s operational areas.
A majority of the power generated is supplied to the State government under a power purchase agreement. However, on occasions when the government’s requirement is lower, SCCL has had to reduce production.
To address this issue, the company explored alternative solutions and initiated the installation of a battery energy storage system to store electricity. A 1 MW capacity pilot unit is being set up in the Mandamarri area at an estimated cost of Rs. 5 crore.
With IEX membership, SCCL can now trade its surplus electricity in the open market. Under the current power purchase agreement, the State government is required to communicate its power demand to SCCL a day in advance. Based on this input, the company will declare the available surplus power and its price on the IEX platform.
Governments and companies across the country can then purchase this power. According to company sources, this will not only help meet the country’s energy needs but also provide additional revenue to SCCL while improving the plant load factor.
