Gridco floats tender for selling 200 Mw surplus power

Buoyed by surplus power available from hydro power stations on the backdrop of favourable monsoon rains and increased generation by private thermal power producers, state-run power trader Gridco has floated a tender for sale of 200 Mw power.

The surplus power, expected to fetch around Rs 800 crore for the cash strapped power trader, is to be supplied between July 2013 and November 2014 through the open access route.

The tender is applicable to firms having inter-state power trading license. Eligible firms have to submit Rs 20 lakh as earnest money deposit. The minimum bid should be to buy at least 50 Mw power, according to the tender notice, whose validity expired today.

The notice stated the minimum bid should not be less than Rs 4 per unit (or one Kwh).

"We would rather stop selling power if rates drop below Rs four per unit. It will be unviable," said an official of Gridco.

Power rates have come down significantly because of sluggish demand. On energy exchanges, average rate for power produced in the eastern region, has been around Rs 2.30 per Kwh for 2013. However, for long-term and consistent power supply, the rates are bound to be more, said officials in the know of the matter.

The average power demand of the state is hovering around 2,400 Mw.

Against this demand, Gridco is availing more than 3,000 Mw power from different hydro power generators, independent power producers (IPP), captive power plants and smaller solar and bio-mass power plants. The hydro power supply, which was around 300 Mw last year, is now more than 1,000 Mw.

Due to improved power supply, none of the four power distribution companies (discoms) have declared scheduled power cut this year, unlike last year. Gridco has already said that barring technical snags disrupting generation at power plants, there will be no load shedding this summer.

Gridco has guaranteed to supply around 80 per cent of committed power to the buyer, failing which it will pay the buyer at Rs 1 per unit for each deferential unit, the tender said.

Recently, GMR Energy offered the state to sell the entire 350 Mw power generated by its first unit. Three other IPPs such as Monnet Power Company, Maa Durga Power and Ind Barath are expected to start generation this year.

As per state government norms, all private power producers have to supply a certain fraction of their power to Gridco at a rate fixed by Odisha Electricity Regulatory Commission (OERC).