The recent rain in Karnataka State has provided relief not only to people who were reeling under an unusually hot summer, but also to independent power producers (IPPs).
With a drop in demand and an improved power situation overall, the government has revoked Section 11 of the Electricity Act, which mandates all IPPs in the State to supply power only to the State grid instead of exporting it. This revocation came into effect from 01-06-2016.
The section was in force since September last year, when the State faced severe power shortage. Monsoon failure, as well as glitches in some crucial thermal power plants, had pushed the Karnataka Electricity Regulatory Commission into giving its nod for a steep nine per cent average hike in electricity tariff for the ongoing financial year.
However, with the peak and average demand dropping substantially with the reduction in heat, the Energy Department has decided to allow IPPs to sell power to whoever they want.
P. Ravikumar, Additional Chief Secretary, Energy Department, told The Hindu that the State now had more power available than the demand, which stand at 9,000 MW and 8,000 MW respectively. In fact, the State was in a comfortable enough position to shut production in four units of the Raichur Thermal Power Station and one unit of the Bellary Thermal Power Station, he added. "IPPs would supply between 600 MW and 1,200 MW," Mr. Ravikumar said.
Source- The Hindu