Energy Trading is one of the most crucial activities in ensuring reliablity in electricity supply. It acts as a balancing mechanism between the surplus power generating units and deficit power needing entities as also replacement of high cost power by low cost power. The responsibility of playing the role of a bridge between these two bounds has been taken up by Reliance Energy Trading Limited, a subsidiary company of Reliance Infrastructure Ltd. The company has been operating in power trading in India since June, 2005. It is trading the surplus power available from state power utilities, state generating companies, independent power producers, captive power plants and other such sources, including the power exchanges.
Ignited by the flames of liberalization, privatization and globalization, power trading has become a multi-billion dollar business throughout the world. Power Trading in India will lead to optimization of cost of power, optimum utilisation of resources and creating enhanced value for customers. Keeping the very fact into consideration. The Government of India recognised trading as an activity through the Electricity Act, 2003.