As many as 14 cogeneration plants owned by private sugar factories in Andhra Pradesh are generating power far below their installed capacities, as they are paid only Rs. 3 per unit (Kilo Watt Hour) compared to over Rs. 5.50 in other States.
Poor gerneration of power
The total capacity of these plants is nearly 154 Mega Watts, but they are not generating even half of it owing to the unremunerative tariff paid by the government. Sugar factory managements have represented the matter to Chief Minister N. Chandrababu Naidu and are awaiting a hike in tariff.
Tarrif to b e fixed
The matter will be taken up by AP-Transco and the Andhra Pradesh Power Coordination Committee, which will fix the appropriate tariff.
The full potential of clean energy (heat converted into thermal energy) is set to remain untapped if the government sticks to the existing tariff, as sugar factories cannot use the entire bagasse for power generation at the tariff being paid to them.
Rich past
Sugar factories had taken the lead in setting up cogeneration plants prior to 2003 when there was no open access scheme, but they have now been left in the lurch with a unit of power fetching just Rs. 3.
“Sugar factories entered into Power Purchase Agreements (PPA) with AP-Transco then. Now, they are seeking permission to opt out of PPAs, as they have no reason to expand their capacities when the tariff is unviable,” KCP Sugar and Industries Corporation chief operating officer G. Venkateswara Rao said.
Clean energy
“A higher output by cogeneration plants will augment the overall power availability in the State. Besides, it is a clean energy that should be promoted by the government in tune with its own policy objective of expanding its renewable energy portfolio,” Mr. Rao added. Meanwhile, Southern Power Distribution Company Limited Chief Engineer (Vijayawada Zone) K. Rajabapaiah said the Power Purchase Agreements were to be renegotiated by sugar factories and that the government was seized of the matter.