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Home News Power Sector News Lok Sabha poll 2009- Many states looks for ‘power at any cost’

Lok Sabha poll 2009- Many states looks for ‘power at any cost’

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India Election 2009Elections could prove to be a lucrative proposition for captive power unit owners and merchant plant operators. The State Electricity Boards are turning to the “power at any cost” mantra to minimise load-shedding during the polling months. This would mean a ready market for those wanting to sell surplus power to the grid. Lucrative tariffs during peak hours could be an added attraction.

Power trading firms could also gear up for a spurt in business over the next couple of months as States desperately seek electricity. Deals on the two functional power exchanges – IEX and PXIL – are also likely to see an increase.

In order to improve the power supply position, especially in the wake of projected demand in the election months, the Power Ministry has started monitoring the status of injection of surplus captive power into the grid. All State Load Despatch Centres have been asked to submit information on open access approvals by them and energy transaction details of captive power units on a regular basis, official sources said.

For grid operators, however, the prospect of most States looking to overdraw to minimise load-shedding could prove to be a nightmare. In the wake of threats to grid stability, the Central Electricity Regulatory Commission (CERC) has stepped up vigil and has started monitoring overdraws at frequencies below 49.2 Hz (hertz) on a weekly basis.

“The prices on the firm and day-ahead power from traders and day-ahead power from exchanges are on the rise due to the summer setting in and increased agriculture load. The threat of a tripping of the grid due to overdrawal of electricity by constituents is very real,” a senior CERC official said.

The prospect of elections in peak summer months has aggravated the problem for grid managers, especially with States planning to leave no stone unturned to appease consumers on the electricity front.

In power-starved Maharashtra, even as the demand has surged to 15,000 MW and deficit way above 4,000 MW, the Maharashtra State Electricity Distribution Company Ltd promises no unplanned power outages. Rajasthan is procuring over 500 MW for as high as Rs 12 a unit during the coming months while Kerala has also announced a no-load-shedding policy for now.

Source - Hindu Business Line

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