Odisha rejects CEA projection of power shortfall by 2017

The state will be energy surplus by 2016, says Gridco

The Odisha government has rejected the projection of Central Electricity Authority (CEA) on power availability in the state. The CEA has predicted that Odisha will face power deficit in the 12th Five Year Plan that ends in 2017 in its 18th Electric Power Survey (EPS) report.

For the current fiscal, the EPS said that the peak demand of the state will be around 4,686 Mw. However, the state government pegs it at a much lower level.

"For the 2013-14, OERC (Odisha Electricity Regulatory Commission) has approved a peak demand of 3,993 Mw, against the forecast of 4,686 Mw made in the 18th EPS. Therefore, the demand forecast presented in the 18th EPS cannot be taken as absolutely correct," said state Energy department in its observation on the survey report.

The CEA had earlier projected that Odisha's power requirement in 2013-14 will be 4,686 Mw while availability will overshoot the demand at 6,356 Mw. However, due to delay in the commissioning of several power projects caused by land acquisition and coal linkage issues, concerns were raised that the state would be power deficit in the current and subsequent years till the end of 12 Five Year Plan period.

Out of 29 Independent Power Producers (IPPs), who have signed agreements with the state to produce thermal power with a combined generation capacity of 37,000 Mw, only three have completed construction of their plant within the agreed timeline, while all others have missed their deadline. These agreements were signed in 2006 and 2009 with a commitment that the plants would be ready by three years from the date of agreements.

As per the survey projection, peak power demand in the state would be in the range of 4,994 Mw, 5,322 Mw and 5,672 Mw for 2014-15, 2015-16 and 2016-17 respectively. But the state said, the projections are not realistic.

"Power availability in the state during the 12th Plan shall be adequate in comparison to the demand forecast. Further, availability from CGPs (captive generating plants) and renewable energy sources and opportunity to procure power through bilateral trading and power exchanges have not been considered in the availability of peak power. Therefore, the demand in the state can be comfortably met during the 12th Plan," the Energy department said.

Officials in Gridco said, while average demand of the state is around 2500 Mw in winter season and 2700 Mw in summer, it is getting supplies of around 2800 Mw from various thermal power stations, hydro power generators, captive power producers and its share out of Central power pool. The sources said, Odisha would be surplus in 2016-17 by around 500 Mw, when at least five new IPPs would become operational. As per the agreement with these IPPs, Odisha will get at least 14 per cent of their total production.