7 IPPs to sign BPTAs with PGCIL this month
Seven of the proposed thirteen IPPs in Orissa have decided to sign bulk power tariff agreements (BPTAs) with Power Grid Corporation of India Limited (PGCIL) within December 31 2008.
The IPPs who will sign BPTAs with PGCIL are - Sterlite Energy, GMR Energy, Lanco Group, Essar Power, Monnet Ispat and Energy, Jindal Photo Ltd and Navbharat Power Private Limited. Around 7000 Mws of power will be evacuated through two high power corridors proposed to be set up by PGCIL from Angul to Barnala in Punjab and Jharsuguda to Dharmajaynagar in Chattisgarh after the signing of the BPTAs.
Orissa will also be getting an additional share of around 2500 Mws of power within the state as a percentage of this evacuation. The state projects to generate around 4000 Mws of power through different state utilities and IPPs by March 2012.
The state energy department expects five of the proposed 13 IPPs to start commercial generation within this time. IPPs in Orissa target a generation of 16,445 Mws of power by the end of the 12th Plan. The BPTA issue was hanging fire for long and PGCIL was dithering on its proposed plans of setting up the two high-powered transmission corridors at a cost of Rs 16,000 crore for evacuating power from the state to the northern, western and southern part of the country.
Orissa energy department sources said, with 7 seven IPPs coming forward to sign the BPTAs, PGCIL has once again rejuvenated its plans of setting up the two power corridors 54 months from the signing of the BPTAs. The high power corridor from Angul to Barnala will be of 800 KV HVDC line for over 1500 kilometres. From Jharsuguda to Dharmajaynagar it will be a 765 KV bipolar capacity line for almost 350 kilometres.
Most IPPs have already filed their long term open access ( LTOA) needs with PGCIL on a 25-year commitment and fixed beneficiaries for evacuation.
IPPs and other state and central power utilities using PGCIL power corridor for power evacuation will have to pay Rs 1 crore for transmitting one megawatt of power. Initially the state requested PGCIL to set up 5 power corridors of 1000-1200 kms. The plan was changed because of unviability.
Power Grid has requested Orissa IPPs to fix realistic targets of generation and transmission. The per unit transmission cost of PGCIL is currently around 20-22 paise. It is on this cost that BPTAs will be calculated in future.
The transmission price, however, will be fixed by CERC after consultation with the Orissa Electricity Regulatory Commission ( OERC). The state commission will be fixing the carrying cost which will be loaded with the tariff at which the generating companies will be selling power.
The union power ministry plans to induce competition among state and private power utilities to drive down future power costs. Currently private sector contributes a meagre 10 per cent of power production in the country. According to estimates, this might go up to 40 per cent by 2020 once the IPPs start production on a full-scale.