Power trading is a vital element of the Indian power sector even though the amount of power traded is only around five per cent of the total generation. But power producers who produce excess power have a place where they can sell excess power and distribution companies who need more power can buy from sources other than their usual supplier. So the setting up of power exchanges is a vital element in power sector reforms since they enable companies to overcome, or at least cope with, demand-supply mismatches.Power exchanges, which were instituted to demonstrate the effectiveness of nationwide platforms for power trading, have attained this objective in the last 3 years. Also, there is a feeling among some industry persons that as more participants enter the market, there will be higher volumes, greater competition and lower prices while others feel that it will be easier for national and regional load despatch centres to deal with a single exchange.Commenting on their importance, Dr Pramod Deo, Chairman, Central Electricity Regulatory Commission, had said, "Power exchanges will play a vital role in maintaining the confidence of investors as they are the institutions that will represent the true price signal of electricity in India."So let's see what the experts have to say about key trends, regulatory issues, challenges, open access, weekly and day ahead products and the way ahead for power trading and exchanges.
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