More States are buying power from power exchanges
Amritha Pillay 27 July 2010

Purchasing from power exchanges has become more popular with States like Punjab and Uttar Pradesh purchasing huge volumes through this mode

Over the past one year, more and more States have been coming on the exchange to purchase power. According to Central Electricity Regulatory Commission (CERC)'s latest market monitoring report, four new States and one new Union Territory have come on the trading platforms post May 2009.

There were 18 States purchasing power on the power exchanges for May 2010 against the 11 States in May 2009. Punjab, Uttar Pradesh, Arunachal Pradesh, Meghalaya and Union Territory Daman & Diu are the new regional players.

Out of these four States, Punjab and Uttar Pradesh have purchased significant volumes in May 2010. For May 2010, Punjab has purchased 29.84 million units (MUs) through power exchanges, which is around 4.45% of the total power purchased by all States through this mode. Uttar Pradesh has purchased 8.60% of the total volume or 57.64 million units in the same period.

According to sources, individual sources and independent units have contributed majorly to Punjab' high purchase volumes, whereas Uttar Pradesh's total purchase is through State electricity utilities. Arunachal Pradesh's purchase volumes are a mix of purchase by the State electricity utility and individual industries.

In May 2009, the total volume of electricity purchased by all States put together was 341.70 MUs. In May 2010, the total volume purchased by the States stood at 670.39 MUs, with around 18 purchasing States.

In May 2009, Rajasthan (34.83%), Haryana (26.25%), Maharashtra (16.78%), Tamil Nadu (12.51%) and Andhra Pradesh (4.18%) were the top five States purchasing power from the exchange. According to the latest (May 2010) data, Uttar Pradesh is a new addition to these top five States, with Andhra Pradesh dropping to the 8th position.

This increase in the number of new States purchasing power from the exchange is also reflected in the total percentage of volumes purchased by the top five States. In May 2010, the top five States purchased around 80.24% of the total purchase volume of all States, 14% less than 94.55% in May 2009.

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