Power trading inherently means a transaction where the price of power is negotiable and options exist about whom to trade with and for what quantum. Power can be traded through openaccess mechanism either bilaterally or via exchange. Bilateral contracts are negotiated between two parties, one being buyer and other the seller. On the other hand, In Exchange trading, the traders can quote their offers and bids a day ahead of physical delivery.

The main objective of REMCL is to explore buisness opportunities in Green Energy including generating and selling its power and providing consultancy in economical power procurement for Railways based on competitive bidding and through energy exchanges.

 

Procurement of power for Indian Railways :-

Hon’ble MR in his budget speech 2015-16 has announced to reduce the cost of electricity:

Item 106: It is proposed to procure power through the bidding process at economical tariff from generating companies, power exchanges, and bilateral arrangements. This initiative is likely to result in substantial savings of at least Rs. 3,000 crore in next few years.”

To fulfil the above announcement, dedicated and collective efforts are required by REMCL and Zonal Railways.

Further in this regard,

i) 550 MW of power has been procured through bilateral arrangements in 5 states i.e. Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh.

ii)Procurement of 585 MW power through competitive bidding in the various states of Western Region (205 MW), Northern Region (220 MW) & Eastern Region (160).RFPs have    been    invited from qualified bidders.

iii) Procurement of power through Energy Exchange at Diwana and Ballabhgarh TSSs of NR is also in progress.