After NTPC, state-owned PSU Gujarat Urja Vikas Nigam Ltd is planning to set up an energy exchange platform for trading power. A senior company official confirmed the development while stating that the project is at a very initial stage.
The company has begun initial spadework for the power exchange as it has already invited bids from trading members and is evaluating the cost of the project and other project details including joint venture partners.
"We are in talks with various reputed players for entering into an equity tie-up for the project," the official said. GUVNL is in talks with players like Tata Power, Essar, Adani Power and Torrent Power for the project, sources said. When asked, the GUVNL official declined to comment on it.
The proposed joint venture will allow GUVNL to have a say in the management, he added. GUVNL may have even less than 51% stake in the project. "All this depends on the players that are zeroed in and the kind of arrangement they are open to," a top official said on conditions of anonymity.
Recently, Triple Point Technology, a supplier of cross industry software for commodity exchanges has provided its flagship product Commodity XL to GUVNL. It is the first state electricity company to deploy the integrated trading and risk management solution.
The state-owned power company has invited bids from various traders for becoming the client member for trading the power through power exchange.
"GUVNL is evaluating the bids received from the members of exchange assuming 100 MW power round the year for both the transaction of purchase and sell through exchange at the tariff rate of Rs 8.00 per kwh and 12% rate of interest for credit period," according to a source.
Based on the bids received, GUVNL shall make cost-benefit analysis of trading power through exchange and select the Member (Trader) for becoming the client member.
