India's southern states are unable to buy power from the rest of the country although a new grid has been put in place since January 1.
Kerala and Tamil Nadu have not been able to buy power from the exchanges over the past one month, a senior official of Indian Exchange said, adding that prices have risen substantially in Andhra Pradesh and Karnataka due to inadequate supply from the local plants.
"Although the national grid now connects the entire country, Kerala and Tamil Nadu have not been able to source any power because this new grid is wheeling only about 300-400 mw a day and power trading has not been allowed on the grid yet," the official said, requesting anonymity.
Kerala, Tamil Nadu unable to buy power from National Grid
While there is no generating station with excess power in these two states, Andhra Pradesh and Karnataka have been receiving some supply from the local plants, he said. However, this supply is not adequate.
As a result, power prices in these two states have risen sharply to 5 per unit from 3 per unit over the past one month, he added. At the same time, there are a number of thermal power stations with idle capacity in north and east India.These plants cannot be fired up as the new grid is not stable enough to supply excess power to the southern states from the rest of the country, officials said.
Until last month, the southern grid was a standalone power distribution system which could not draw adequate power from the rest of the country. Producers such as NTPC, on the other hand, were saddled with idle capacity because they could not route power from their plants due to lack of a transmission system linking southern India. Power prices have, therefore, remained high in the southern states, officials said, adding that the new grid is yet to change the scenario.
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