Transmission for merchant generators problematic: PowerGrid chief

Transmission for merchant generators problematic: PowerGrid chief

NEW DELHI .   Merchant generators often complain that a customer has not paid and hence the power has to be channelled elsewhere.” R.N. NAYAK, CMD, POWERGRID
 
In a chat with Business Line, R.N. Nayak, the company’s CMD, spoke of the energy carrier’s capabilities to carry long-term power sales to destinations, while expressing his inability to handle the requirements of merchant power operators, who frequently transfer supplies to different locations. Excerpts from the interview:
 
Power generators say that after the grid failure last year you have re-rated your lines and lowered the carrying capacity; hence, merchant power cannot be transferred as before...
 
The biggest problem for merchant electricity generators today is that they have no buyers. (Merchant power projects sell electricity in the open market and do not have long-term power purchase agreements with the States or distribution utilities.)
 
PowerGrid had more than adequate capacity to carry all long-term power sales to destinations but was in no position to handle the requirements of merchant power operators, who keep transferring supplies to different locations frequently, more due to payment issues.
 
One must understand transmission lines are directional and wires need to be laid. It is unlike generation. If one has 10-15 per cent surplus over and above the long-term commitments being routed, it can be wheeled. Beyond that, it is difficult.
 
The problem for merchant generators is that they are unable to spell out where they want to despatch. A common complaint is that someone is not paying and hence the power has to be channelled elsewhere, to another purchaser. Moreover, many generators who had put up plants were sure they could make money and that there was no need to tie up supplies for 15-25 years. BUSINESS LINE.

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