Abstract
Power industry is the result of three major segments-generation, transmission and distribution. There takes place an exchange of power between regions having a surplus and regions facing a deficit. When the exchange of power/energy is structured with commercial mechanisms, trading transactions occur. The responsibility for transmission of power within India is allocated to Power Grid or SEBs. Trading of power will help in better utilization of existing generation and transmission capacities as well as help in realistic assessment of investment requirements. Power Trading Corporation acts as a bulk buyer of electricity generated from various projects and then sell the same to multiple takers. The paper discusses issues, challenges, market scenario, competition and risk of power trading in India.
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