Telangana discoms optimising procurement efficiently
Hyderabad: The Telangana State discoms are amongst the few discoms that are optimising their procurement efficiently on a real-time basis by procuring and selling in the market depending on demand and price variations, Rohit Bajaj, Indian Energy Exchange (IEX) Business Development Head and Senior vice-president said. In an exclusive interview to Telangana Today, Bajaj, complimenting Telangana […]
Published Date - 12 January 2022, 11:55 PM
Hyderabad: The Telangana State discoms are amongst the few discoms that are optimising their procurement efficiently on a real-time basis by procuring and selling in the market depending on demand and price variations, Rohit Bajaj, Indian Energy Exchange (IEX) Business Development Head and Senior vice-president said.
In an exclusive interview to Telangana Today, Bajaj, complimenting Telangana for its efficient power management, said the State, besides having a high renewable energy potential, is one of the top sellers under Green Term Ahead Market (GTAM) solar segment. The State discoms have more than 4,400 MW of solar generation under their portfolio, and it addresses the entire power deficit during Rabi and Kharif agricultural months with procurement from the Exchange Market.
What is the role of IEX?
India Energy Exchange (IEX) is an energy marketplace to facilitate trade in electricity market, green market, certificates through various market segments such as day-ahead, term-ahead, real-time, green-term ahead, green-day ahead, energy saving certificates and renewable energy certificates. IEX power prices serve as benchmark for the power sector value chain. It has 7,000 plus registered participants including 55 plus discoms and 550 plus electricity generators. The Telangana State discoms are amongst the few discoms that are optimising their procurement efficiently on a real-time basis by procuring and selling in the market depending on demand and price variations.
How is Telangana leveraging the platform?
Telangana is the only State in the country which is supplying round-the-clock power to the agriculture sector. The State discoms have been actively procuring from the market to meet their demand and have even replaced their costlier generation with low cost power available on the IEX. Telangana has a high renewable energy potential. Its solar and hydro sources significantly support the State in meeting its power supply requirements. It is one of the few States which is operating and utilising pumped hydro storage most effectively. Nagarjuna Sagar (816 MW) and Srisailam LBPH (900 MW) are major water storage reservoirs in Telangana that can be operated both as pumps and for generation. Telangana State Load Despatch Centre in coordination with discoms operates these stations in the pump mode by purchasing power from the market during low price hours and utilising it for generation during morning and evening peak hours when demand and prices in the market are high. The operation of pump hydro storage is not only helpful for discoms in power procurement optimisation but also for balancing renewable energy, high-frequency excursions during load change over, and stabilising a high rise in voltage.
What is TS’ position in the Green Market segment?
Telangana is one of the top sellers under Green Term Ahead Market (GTAM) solar segment. The State discoms have more than 4,400 MW of solar generation under their portfolio, and they utilise the GTAM segment to sell surplus solar power after meeting their RPO obligations. Discoms have sold around 1 billion units of solar power from August 2020 to November 2021.
How is Telangana managing demand?
The State of Telangana experiences power deficit during the agriculture season. The State addresses the entire power deficit during Rabi and Kharif agricultural months with procurement from the Exchange Market. Telangana is a prominent participant at the IEX platform, with the Telangana State discoms among the top 3 buyers in Day Ahead Market (DAM) and Real Time Market (RTM) segment and top seller under Green Term Ahead Market (GTAM) solar segment. Discoms procured around 7 BU in DAM and RTM together in FY21 at an average price of Rs 3.04 per unit in DAM and Rs 2.36 per unit in RTM which is less than the Rs 4.159 /kWh average power procurement cost (APPC).
What is the energy market scenario in India?
India consumes about 1400 billion units of electricity on an annual basis. The short-term power market is about 10-12 per cent of India’s power sector accounting for over 150 billion units. Exchanges are major contributor in the market with share of over 60 per cent. India’s energy mix is diversified comprising of coal, natural gas, wind, solar, hydro, and nuclear energy. Currently, India’s installed capacity is at 392 GW out of which renewable energy stands at 104 GW. The demand, which is on a rise for many years now and with the exception of FY 21 due to Covid-19 impact, it is expected to grow further.