The Andhra Pradesh Electricity Regulatory Commission has opined that the disagreement between AP and Telangana States relating to generation of energy from AP Power Generation Corporation (APGenco) and its Telangana counterpart TSGenco is expected to be over 3,536 million units a year.
The Commission arrived at the figure after assessing the cross border flow of power from the generation stations located in the two States. Accordingly, AP is expected to export 9,936 MU to Telangana and Telangana in turn would export 6,399 MU, resulting in export of 3,536 MU from AP to Telangana, working out to generation capacity of 504 MW at plant load factor of 80 per cent.
The Commission said the differences between the two States could be bridged if the Centre allocates additional power to the extent of 500 MW. The gap of 500 MW could narrow further in the coming years as new generation will come into stream. The APERC arrived at the conclusion after evaluating the present and future requirements of the two States. The commission made the calculations on two models based on the provisions in the AP Reorganisation Act.
In an advisory to the two States, the regulator said it had evolved an independent model wherein the APGenco is divided geographically so that the State which owns the assets will also be entitled to the disposition of its assets including the disposition of the power generated by the plants located therein. The other model is interdependent model that aims at continuing the PPAs signed by the Distribution Companies for ongoing as well as upcoming projects.
While energy allocation based on interdependent method (as per the GO Ms No 20) would entail a surplus of about 202 MU to the State of Telangana, allocation based on geographical location (independent method) made Andhra Pradesh a surplus state by 2186 MU. “These two diametrically opposite outcomes appear to form the background for the present differences of opinion on sharing of power between the two states,” the commission said in its advisory.
In the event of allocation of additional 500 MW not fructifying, the Commission said a choice might have to be made between the independent and interdependent mode. “The Commission consciously does not make any recommendation in this regard,” the advisory said. The difference between the interdependent and independent model works out to an allocation of 500 MW presently and if the interdependent model was adopted, the entire allocation could be made from one generating station exclusively.
Such a nominated station would be the only inter State station among the APGenco stations which would supply the required power from Andhra Pradesh to Telangana. Such an arrangement, if adopted, would considerably alleviate the operational, commercial and regulatory challenges envisaged.
