Jaya seeks Modi's help for long-term access to TN's power suppliers

State signed PPA to procure 3,330 MW of power under long-term access for 15 years

Tamil Nadu Chief Minister J Jayalalithaa today asked Prime Minister Narendra Modi to direct the Ministry of Power and the Power Grid Corporation of India (PGCIL) to consider the Long Term Access application of the state's power suppliers, without taking into account the temporary allocation of surrendered power. She also asked the Ministry of Power and PGCIL to review the transmission reliability margin so that Tamil Nadu can get its rightful share of long-term access.

In a letter to the Prime Minister today, Jayalalithaa asked for his "urgent" intervention in the matter of allocation of transmission capacity under Long Term Access by PGCIL to enable transmission of power from the western and eastern regions to Tamil Nadu. Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) has signed 15-year Power Purchase Agreement (PPAs) with Private Power Producers to facilitate this transmission.

Jayalalitha noted that, based on the advice of the Ministry of Power to go in for Long Term Power Purchase to meet the demand-supply gap, TANGEDCO had signed Long Term Power Purchase agreements for 15 years commencing from 2014 for 3,330 Mega Watt (MW). Of this, 2,158 MW has been contracted from private power producers outside the Southern Region.

These suppliers have applied for Long Term Access from November, 2013 to January, 2014 to the PGCIL, the designated Central Transmission Utility.

She noted that the Sholapur to Raichur inter-regional transmission lines with a capacity of 4,000 MW had been commissioned, enabling flow of power from the Western Region to the Southern Region. Even though a transmission capacity of 4000 MW has been created, a total transfer capability of 1100 MW and available transfer capability of 350 MW only has been declared by the PGCIL for the present after considering a high transmission reliability margin of 750 MW. This implies that only 350 MW can flow to the Southern Region now.

While the applications for Long Term Access from the long term power suppliers of the TANGEDCO are pending with the PGCIL since November 2013, the Ministry of Power has allocated an additional 377 MW of surrendered power of the Government of Delhi to Andhra Pradesh, Telangana and Kerala over and above the present allocation of 316 MW to these States up to March 2015.

"This will adversely affect availing of transmission capacity under Long Term Access by Tamil Nadu as even temporary allocation of power from Central Generating Stations (CGS) is considered equivalent to long term power for allocation of transmission capacity," said the Chief Minister, who said this temporary allocation of power by the Ministry of Power should not curtail the Long Term Access entitlement of Tamil Nadu. Further, fixing high transmission reliability margin of 750 MW, requires review and reconsideration.

She asked the Prime Minister to advise the Ministry of Power and the PGCIL to consider the Long Term Access application of power suppliers to Tamil Nadu without taking into account the temporary allocation of surrendered power of 693 MW to some of the Southern States. The Ministry of Power and PGCIL may be also be directed to review the transmission reliability margin so that Tamil Nadu can get its rightful share of Long Term Access," said Chief Minister in her letter.

Present demand of power in the state is around 13,000-13,500 MW and this is expected to go upto 14,500 MW by the end of 2014-15. The installed capacity of conventional energy sources of TANGEDCO is 11,884.44 MW as on March 31, 2014.

Under medium term power purchase, 500 MW of power is being procured from June 2013. Power purchase agreements have been signed to procure 3,330 MW of power under long term for 15 years from 2014-15. Out of this, 224 MW of power is already being availed. 1,500 MW of power would be flowing from August 2014. The balance will be available from 2015-16.