Energy Secretary N. Srikant on Friday said that State discoms were facing an unprecedented financial crisis due to purchase of high-cost power.
“In order to come out of the crisis, the government is looking for cost-effective sources with the objective being protection of consumer interests,” Mr. Srikanth said.
He suggested that a variable energy pool at the national level would enable the States to purchase electricity at cheaper rates and possibly sell any surplus power. Mr. Srikanth was participating as chief guest at a workshop organised by the Indian Energy Exchange (IEX) here on Friday.
“A.P. would remain power-surplus till 2023-24 and be able to meet the energy demand in the coming years. Power procurement from exchanges is about 2.50% of the overall consumption, which is lower than that of Gujarat, Bihar, Uttarakhand, Maharashtra and West Bengal,” Mr. Srikanth said.
A.P. discoms had purchased 1,600 MU in 2018-19, which came down to 1,059 MU in 2019-20.
Mr. Srikanth stated that the discoms should utilise the daily market for decreasing power procurement cost when exchange prices were low so that it would benefit consumers.
The State had purchased power at IEX at an average price of ₹3.88 per unit in 2018-19 and the discoms bought power at ₹3.35 per unit only on an average.
AP-Transco Joint Managing Director K.V.N. Chakradar Babu suggested to the discoms to be alert and study the real-time power market to make purchases when prices trade at low levels.
IEX Head (Business Development) Rohit Bajaj advised the discoms to enter into long-term Power Purchase Agreements only to manage their base demand and the remaining energy (for peak and variations in forecast) should be bought through other available market options.
