Power Procurement in India: Analysis of Open Access and Transmission Congestion

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Power Procurement in India Analysis of Open
Access and Transmission Congestion

• Market Reports On India

www.marketreportsonindia.com
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Synopsis
The Electricity Act 2003 brought about a series
of changes in the power sector in India which was
struggling to keep up with the rapidly increasing
power demand. The Act puts immense stress on
promotion of competition in the power sector
which was previously absent from the Indian power
market. Policy makers further engraved the
concept of competition in India with the
enactment of open access and competitive bidding
in the electricity sector. Competitive bidding
introduced competition between generators, while
competition on the distribution side, to bring to
end the monopolistic regime of distribution
companies, was facilitated by open access which
allowed non-discriminatory access to transmission
and distribution lines.


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Competitive Bidding and its Implications in the
Indian Power Market The report covers Case1 and
Case 2 bidding mechanisms, giving details of
projects under each mechanism along with the
levelized tariffs. The state-wise response under
the competitive bidding mechanisms have been
discussed in detail, allowing any vendor in the
power sector to understand the year-wise market
dynamics prevailing in the Indian power sector.
The growth of short term power markets in recent
years shows the potential of the emerging power
exchanges in India. The trend signifies the
market movement from long term power procurement
to short term power market, indicating power
market development in India.


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The Way Forward While some states are
aggressively pushing OA and creating the
necessary infrastructure to back OA, other states
are banning OA by invoking section 11 of EA 2003.
Many state governments and utilities have stopped
permissions for open access and have also imposed
restrictions on movement of power from sellers to
users. Maharashtra Electricity Distribution
Company Limited has turned down as many as 29
applications for open access since April this
year. Gujarat has banned OA buying into the state
and similarly, Tamil Nadu has banned OA sales
outside the state. The ban on OA coupled with
transmission congestion in various parts in India
saw a huge decline in short term power
transaction in the last 3 months.


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• Highlights of the report
• Study of the recent changes in terms of power
  procurement through competitive bidding route
• - Coverage of OA, its rules and regulations,
  policy preparedness of states for OA
• - State wise status of OA implementation and
  various charges levied on consumers
• - Transmission infrastructure status update and
  investment in IndiaPricing mechanisms and POC
  charges for power flow from one region to another

Contact No 91.22.27810772, 27810773
Email Id info_at_marketreportsonindia.com
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Table of Contents

1. Executive Summary
2. Power Procurement in India
3. Standard Bidding Guidelines for Power Procurement
4. Role of Open Access in Supplementing Competitive
   Environment
5. Impact of Open Access in India An Overview
6. Implementation and Deviations of Open Access
7. Open Access in Transmission Sector
8. Transmission Congestion A Major Challenge
9. Open Access Pricing and Short Market Development

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Email Id info_at_marketreportsonindia.com
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Analysis of Open Access and Transmission
CongestionContact Us Toll Free US
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