NTPC to step up sale on power exchanges

To increase spot sales and share benefits of lower price with cash-short discoms

NTPC, the country’s largest, state-owned electricity generator, is pushing sales in the spot market through a different model.

It says it will increase its portion of sale on power exchanges and share the benefit with the respective power distribution companies (discoms). This could also lead to rate reductions.

As prices in the spot market have dipped to as low as Rs 2 a unit, this is becoming attractive for the cash-short discoms. More and more of them are choosing this market over the long-term power purchase agreements (PPAs) with generators.

The price of power in the spot market is around