Despite Kerala’s aversion to placing orders for maximum power generation from NTPC’s Kayamkulam unit and proposals put forth by the former United Democratic Front government to shift the plant from the place, the State will have to depend on the public sector company to meet its electricity requirements. It is because the future plans of the State for additional power generation fall short of the demand. This apart, the State will have to spend more on power purchase in the event of the exit of NTPC from the State’s electricity supply scenario.
Present capacity
The installed capacity of power generation projects in Kerala is 2,891 MW. This includes 30 hydel projects with a capacity of 2,008 MW, two thermal projects of 234 MW, a wind project with 2 MW, and independent power producers (inclusive of NTPC Kayamkulam with a capacity of 360 MW) having a capacity of 647 MW. The electricity demand exceeds 4,000 MW in the State, according to reliable sources in power sector.
The Athirappilly power generation project figures prominently among the new hydroelectric projects planned by Kerala State Electricity Board (KSEB) for the period up to 2019.
With the prevailing uncertainty over the Athirappilly project with a capacity of 169 MW, the board will have to be satisfied with about 300 MW capacity addition from more than 15 small hydro electric projects.
Over 30 per cent
The power availability position paves the way for dependence on power from other sources. NTPC now supples 1,185 MW to the KSEB, including supply from the Kayamkulam unit.
NTPC meets over 30 per cent of the power needs of the State, according to NTPC officials.
NTPC has been providing 180 MW electricity to the KSEB from its Talcher plant in Odisha under a special arrangement, at Rs.1.20 to Rs.1.80 per unit.
“The special allocation was made applicable since 2005 considering the high cost of generation (Rs.6.30 per unit) at Kayamkulam. Thus, the average cost of power supplied to the KSEB by NTPC comes about Rs.3.50 per unit,” a senior official said.
If the State wants to refrain from the power supply pact with NTPC, the former will have to spend more on power purchase, sources in the industry said.
NTPC supplies 1,185 MW power to KSEB, including from Kayamkulam
State’s electricity demand exceeds 4,000 MW
