The recent proposal of Forum of Regulators (FoR) to grant freedom to the discoms to meet their electricity requirements from the Short-term Market (STM), within a specified ceiling of tariff, is believed to be a major turnaround step in the wholesale power market. The freedom has been granted as no prior regulatory approval is needed to procure electricity from STM, if the electricity shortage is due to the factors, which is beyond the control of the distribution utility.
Moreover, in the context to power procurement planning, the role of regulator cannot be ruled out. At present, regulators are playing the important role of governing body, and are striving to incentivise/ penalise the discoms to optimize their power procurement planning and to strike the necessary balance between the long-term and the short-term power procurement, for further approval of tariffs. However, despite the regulations in place, states such as Tamil Nadu are acting in an inefficient manner by meeting their requirements from STM and the regulators so far have been incapable in encouraging the efficiency of the state utility. In this light, the report has emphasised the role of regulators in power procurement.
Key queries resolved: The key queries which are addressed in this report are:
- What is the present regulatory scenario on light of power procurement from upcoming plants?
- Which are the best states (discoms) for a seller (developer/trader) to sell power?
- What are the best power procurement practices for buyers in the current wholesale power market?
- What are the best ways to capitalize on the opportunities prevalent in long-term and short-term markets?
- Which are the best states for a seller to sell power to an industrial consumer via open access?
- What are the right selling strategies for sellers in context to fuel (coal) ?
- What are the key takeaways for India from Global Power Market?
- What would be the level of maturity of wholesale electricity market in future?