NLC India Ltd. (NLCIL), the public sector lignite mining and power generation enterprise, is diversifying into power generation from renewable sources such as solar and wind in a big way.
According to a press note, as part of its diversification plan, NLCIL has joined the league of Accredited Power Traders in the country with the Central Electricity Regulatory Commission (CERC) granting it Category I licence for power trading.
NLCIL took up trading of Un-Requisitioned Surplus Power (URS) in 2016 through NTPC Vidyut Vyapar Nigam Ltd. (NVVN) and earned a revenue of ₹134 crore in 2016-17. This figure shot up to ₹294 crore in 2017-18.
Now, NLCIL will take up trading of power as an independent trader.
It plans to trade through an exclusive arm by procuring power from other generating companies (GenCos) through bilateral agreements.
The trading of surplus power in the market will pave the way for effective utilisation of capacity of the generating companies by catering to the needs of the procuring entities by utilising the surrendered/surplus power which, otherwise, would have gone waste, the press note added.
