In view of the frequent congestion in the inter-state transmission systems, which is affecting operation of the two power exchanges, the Central Electricity Regulatory Commission (CERC) has directed the central transmission utility (CTU), Power Grid Corporation of India Limited (PGCIL), to furnish its recommendations to relieve congestion in the inter-state transmission of electricity, latest, by August 10, 2010. In its order dated July 19, 2010, the apex regulator asserted that one of the functions of the CTU is to 'ensure development of an efficient, coordinated and economical system of inter-state transmission lines for smooth flow of electricity from the generating stations to the load centres'. Accordingly, PGCIL is required to suggest the remedial measures for growing congestion in the grid, taking into account the operational feedback provided by the National Load Dispatch Centre (NLDC) in this regard.
Of the average 615 million units (MU) traded by Indian Energy Exchange (IEX) and Power Exchange of India Limited (PXIL) in a month, an average of 18 MUs are not being transmitted due to grid congestion. As indicated by the Market Monitoring Cell of CERC in its report for the short-term transactions in electricity during May 2010, in IEX, congestion occurred about 7.53% of the hourly time blocks, whereas in PXIL it occurred about 8.06% of the hourly time blocks. Congestion occurred in most number of times during 6.00-12.00 hours of the day in both the exchanges. About 1% of the actual cleared volume in IEX and about 3% of the actual cleared volume in PXIL could not be cleared due to congestion. Simply put, congestion means a situation where the demand for transmission capacity exceeds the available transfer capability of the national or regional grids.
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