EPR Subscription Banner
EPR Subscription Banner
Promonique Banner
Promonique Banner
Home » Power Talk » PTC sets a target of 500MW of renewable additions

PTC sets a target of 500MW of renewable additions

By Admin November 16, 2022 12:00 pm

PTC sets a target of 500MW of renewable additions
.

PTC’s vision is to be a frontrunner in power trading by developing a vibrant power market and striving to correct market distortions, says Dr. Rajib K. Mishra, CMD (Addl. Charge) & Director (Mkt & BD) of PTC India.
How do you assess the effects of the current energy transition on power trading?
PTC is transitioning to renewable energy along with all other Indian energy sector participants. Our focus is not only to increase the proportion of RE in the pool of tradable surplus but also to contribute to the balancing market required to address the inherent intermittency of RE. The purpose is that, as RE is available in some parts in the form of wind or solar, we need to ensure that the power supply to the consumers is 24*7. As we supply a larger quantum of RE in the market. PTC is making all these efforts to provide the balance. Also, the profile of customers should be taken care of while transitioning to RE. As a fundamental principle, the variability in demand or supply is an opportunity in trading to address mismatches. We want to offer this balancing supply to the customer for any industry.
Can you give us an update on the current state of the power markets?
India is the third largest producer and electricity user in the world. We have a total generation of almost 1400 TWh and an installed capacity exceeding 400 GW. We have these vast capacities, but our per capita consumption is low compared to developing countries like Brazil or any other European nation. There is a significant opportunity for growth for us, and with a GDP growth expected to be 7-7.5 percent in the future, there is a huge demand for electricity in the market. Of course, we must keep in mind that we have a target of 500 MW of renewable capacity addition. We are also moving towards hydrogen as a fuel source. Then EVs are also being considered an alternate mode of transportation, so many things are encouraging. We are at a juncture where we may see another growth potential in the future. India has played a pivotal role in reviving the regional power market in South Asia. The economic policies and structural developments have introduced possibilities for comprehensive regional integration. Bilateral energy trade between India and its neighbours is a crucial building block of the integrated regional energy market. PTC is the pioneer in crossborder trading with Bangladesh, Nepal and Bhutan. Additionally, we are closely monitoring the situation and would like to increase the business we currently conduct with these nations. The new power laws and policies, such as the general network access GNA, green open access, and the payment settlement mechanism, as well as the ancillary services regulations and late fees, are some of the other significant things that have recently occurred in the supply segment, which has advanced the market design and which is becoming more mature.
How is the ever-increasing energy demand changing the power market and trading prices?
A complicated interplay between supply and demand variables leads to trading prices. In addition to being influenced by supply and demand, the trading market and market prices are also affected by global concerns, such as fuel supply, given the geopolitical environment. At this point, it is essential to highlight that the overall short-term trading, whether through exchanges or simply bilaterally is eight to ten percent of the country’s total generation, has recently changed and undergone a significant transition throughout the COVID period. When the country’s demand was just 180 to 190 GW, it increased to 200 to 210 GW at its peak, an increase of approximately 11 percent over the previous six months. We must pay special attention to how the demand is developing. And, of course, we have to keep an eye on commodity inflation that is reflected in energy prices such as natural gas and imported coal and the impact on the cost of electricity. In the long run, the demand for a massive capacity of the VRE, new elements like storage and evolving market design, trading activities, value added services, and market aggregation is likely to increase. We are also witnessing a significant shift in the use of hydrogen as a fuel.

Advertising

EPR Android App Banner

What are your thoughts on competitive bidding in the power market to stay in business?
Competitive bidding has historically been the best method of obtaining power since it provides a high level of transparency and encourages most purchasers to act rationally when making purchases. And recently, you’ve probably seen that price discovery is sensible and that there is fair competition, which has resulted in the introduction of electronic portals. Because of the competitive advantage, the standardised rational approach adopted in the bidding process, mainly contractual provisions like the earnest money deposits and performance guarantees, definitive timelines, reverse auction and also the deep domain expertise and diverse portfolio network, we will always be an essential participant in any competitive bid process. A competitive bidding procedure allows participants like PTC to capitalise on their advantages, and we are actively on the platform.
PTC_EPR Magazine
What are the latest developments in the green contract market?
We previously talked about the updated regulations for green energy certificates, which provide traders access to additional marketplaces and the chance to buy and sell outside the exchanges. The certificates’ expiration dates have been extended, and they are now suitable for a longer period until they are redeemed. As a result, a trader like PTC can organise products according to market demands and participate in market creation. Additionally, we can divide renewable energy certificates, which are made up of renewable qualities and electrons, individually, thanks to the current structure. The parliament recently passed the Energy Conservation Amendment Bill 2022, which alters the 2001 Energy Conservation Act to facilitate energy efficiency. PTC is a significant player in the energy efficiency segment and the new amendment increases our opportunities. There are separate obligations for hydro or green hydrogen, which is now also required, which will lead to a significant segment: carbon. And, the legislation suggests using non-fossil fuel energy at least at specified levels.
Additionally, the domestic trade in carbon credits will be a vital component of the new bill. The government has said that it will stop allowing the export of carbon credits unless specific carbon targets are met. All of this makes for the fantastic potential for carbon credits in the future, but we also see enormous prospects in the green contract market and the REC market in the future.

Cookie Consent

We use cookies to personalize your experience. By continuing to visit this website you agree to our Terms & Conditions, Privacy Policy and Cookie Policy.

Tags: Power Talk
Android App
Android App
EPR EMagazine October 2024
EPR EMagazine October 2024
EPR EMagazine October 2024

Events

Windergy
Windergy
PTC Asia
PTC Asia
Distribution Utility Meet
Distribution Utility Meet
Auto EV India
Auto EV India
Global Sustainability Expo & Conference
Global Sustainability Expo & Conference
Elecxpo
Elecxpo
India Smart Utility Week
India Smart Utility Week

Our Sponsors

Panasonic Life Solutions India Pvt Ltd
Panasonic Life Solutions India Pvt Ltd
Rayzon Solar Pvt Ltd
Rayzon Solar Pvt Ltd
NBC Bearings
NBC Bearings
Lawson Fuses
Lawson Fuses
Nirmal
Nirmal
Meco Instruments Pvt Ltd
Meco Instruments Pvt Ltd
Waa Cables
Waa Cables
Bask Energies
Bask Energies
Gloster Cables Limited
Gloster Cables Limited
Fevino
Fevino
Elev8 Lift
Elev8 Lift
flir system
flir system
Omicron
Omicron
Sudhir Power
Sudhir Power
CAT
CAT
Electrical Research Development Association
Electrical Research Development Association
Schneider Electric
Schneider Electric
Innovatek
Innovatek
Kirloskar Pumps
Kirloskar Pumps
Electrotherment
Electrotherment
Aeron Composite Pvt Ltd
Aeron Composite Pvt Ltd
Delta
Delta
Goldisolar
Goldisolar
Aamokshsolar
Aamokshsolar
Om Technical Solutions
Om Technical Solutions
Perkins
Perkins
Apil
Apil
Build Smart
Build Smart
KYB Conmat
KYB Conmat
MENNEKES Electric India
MENNEKES Electric India
PRAMA HIKVISION INDIA
PRAMA HIKVISION INDIA