India power regulator OKs new market segment for 'expensive' power - order (updated)

Indian Energy Exchange

17/02/2023 07:06

(Recasts, adds IEX quote)
    By Sarita Chaganti Singh
       NEW DELHI, Feb 17 (Reuters) - India's power regulator
has approved a proposal to start a separate spot market segment
for 'expensive' power, according to an order handed down to the
Indian Energy Exchange (IEX)  IIAN.NS , with record demand
levels expected this summer. 
    The approval from the Central Electricity Regulatory
Commission (CERC), given to the country's largest spot power
market, is for electricity derived from costlier sources of
imported coal and gas, as well as battery storage.
    Other power plants operating on low-cost fuel will not be
allowed to sell electricity on the new market segment, according
to the order, a move seen as ensuring increased electricity
availability. 
        IEX expects to start the market segment by mid-March, a
spokesperson said, before high temperatures begin to push power
consumption higher. 
    The power regulator fixed a ceiling of 50 rupees ($0.6042)
per unit of electricity (kWh), according to the order. 
    Most of the plants based on costlier fuel operate at low
capacity for lack of buyers. However, until last year states
purchased electricity at 20 rupees per unit to meet high demand
during summer months and crop sowing seasons. 
        The CERC had in April 2021 lowered the cap on the
ceiling for all spot power market segments to 12 rupees per unit
of electricity.  
    ($1 = 82.7600 Indian rupees)
 (Reporting by Sarita Singh in New Delhi; Editing by Nivedita
Bhattacharjee and Kenneth Maxwell)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))