In Short : “The Power Ministry directs GENCOs to offer surplus power for sale in markets, leveraging excess capacity to meet demand fluctuations and optimize energy resources in the power sector.”
In Detail : The Ministry of Power has directed power generating companies to offer surplus power up for sale in the power markets
New Delhi : The Ministry of Power has directed power generating companies (GENCOs) to offer surplus power up for sale in the power markets. “It has been observed that some power generators are not offering the un-requisitioned surplus power (after meeting the requirement of the medium/long term procurer) in the power market, thus resulting in unused power capacity at the national level,” said an official order issued by the Ministry of Power on Monday. The directive came as peak power demand touched 209 GW on April 21. With intense heatwave conditions prevailing in several parts of India and the country bracing for a hotter-than-usual summer, the peak power demand is expected to rise further.
Last week, the government asked GENCOs to operate underutilised gas-based power plants in May and June and extend operations of imported coal-based plants until October 15 this year to meet the anticipated high demand for electricity.
‘GENCOs with long-term coal linkage can sell surplus power in market’
“Ministry of Power has received representations from power utilities highlighting that existing Fuel Supply Agreement (FSA) (through LoA route as well as under SHAKTI B (ii) for IPPs) do not allow usage of linkage coal for any other purpose other than to meet the long-term PPA obligations with the DISCOMs,” said the order.
“It is to clarify that in accordance with the provisions of Tariff Policy, 2016 and Electricity (Late Payment Surcharge and Related Matters) Rules, as amended from time to time, allows generating company, including the generating company having long-term coal linkage under FSA with coal companies, to offer the un-requisitioned surplus power in the power market (sic.),” the government clarified.
