Andhra offers power for gas to run idle capacity

In a bid to tide over the power crisis in Andhra Pradesh, the Central Electricity Authority (CEA) has agreed to mediate with Gujarat and Maharashtra for a novel swapping arrangement wherein AP would get 6.5 mmscmd of natural gas to run about 1,500 Mw of idle gas-power capacity.

In return, AP will offer similar quantity of power to these states by purchasing from the surplus states, including the eastern region. AP has come up with this alternative idea as it cannot draw power directly from the surplus regions of the country due to corridor load constraints. In earlier instances, AP used to swap natural gas with regasified liquefied natural gas (RLNG) to run the idle capacity when the KG-D6 gas was available for power generation.

"We will hold a meeting with the states concerned," AS Bakshi, chairman of CEA, said here on Saturday after reviewing the power sector problems with the state energy department officials. This was one quick measure to improve the supply-demand situation in the state, he said. In a peculiar situation, some of the power plants in Gujarat have shut due to the surplus power situation prevailing in that part of the country, according to him.

In March, the supply-demand mismatch was about 65 million units per day in AP. About 6,000 Mw of installed capacity in hydro and gas-based projects was kept largely idle due to lower reservoir levels and stoppage of gas from the KG-D6 fields. Gas-based power generation is now limited to the capacities tied up with natural gas supplies from state-owned upstream oil company ONGC.

"Southern states, in particular Andhra Pradesh, are facing acute power shortage due to poor monsoons last year, shortage in natural gas and coal in addition to the corridor transmission problem," Bakshi said. The transmission constraints would be over in a year. New transmission corridors - with 2,000Mw load - connecting the southern region with the rest of India are expected to be ready by January next year, according to Bakshi.

Commissioning of the Kudankulam nuclear power plant expected next month would also ease the situation a bit as Tamil Nadu's dependence on inter-regional transmission corridor would come down. This, in turn, could be utilised by other states in the region. Also, about 300 Mw of unallocated power from the Kudankulam project would be recommended for AP, he said.

Problem is fuel not capacity

Responding to a question on the overall outlook for the power sector, Bakshi said the country as a whole was facing a power crisis because of fuel shortage.

"There is no problem as far as the capacity addition is concerned. This year, the country has added 20,000 Mw and it was same last year as well," he said. India needs to import 45 million tonne coal, which is equivalent to 70 million tonne domestic coal in terms of calorific value, next year. This, excluding the requirement of the imported coal dependent power plants, according to him.

On the demand of tariff revision coming from the the developers of ultra mega power projects, Bakshi said the matter had been heard by the Central Electricity Regulatory Authority, including that of the Krishnapatnam UMPP.