The Ministry of Power (MoP) is making all possible efforts to ensure optimal usage of surplus power generation capacity, as outlined in a scheme which was discussed at a review meeting held last month.
Under the proposed scheme, a national portal would be created to facilitate temporary allocation of power from the surplus (seller) entity to the deficit (buyer) entity.
This will help the country handle the power supply situation in an efficient way so that shortages can be averted, especially during adverse conditions similar to the one faced last year due to high gas and coal prices.
It should be noted that electricity is delivered to the end-users through transmission and distribution networks. However, since electrical power cannot be stored in large quantities, generation and consumption should match in real-time to meet national demand.
The scheme envisages paperless working for maturing transaction that are based on regulatory tariffs approved by the appropriate commission. The prerequisites involve willingness of seller and buyer, confirmation of transmission corridor by National Load Dispatch Centre (NLDC) and payment security by the seller before scheduling of such power.
In addition, the generating stations would be permitted to revise schedule for surplus power from its original beneficiary to any other beneficiary in such a manner that the new beneficiary will be liable to pay both variable charge and fixed cost for full requisition.
Power supply position
The Indian power sector has seen a steady decline in power deficit volumes over the last decade. However, there was a widening gap between power supply and demand this year amid low stockpiles at power plants during peak summer, which forced several state governments to impose power cuts to compensate the deficit.
During April-October, 2022 power demand increased 10% y-o-y to 904,639 million units (MU) against which consumption was recorded at 899,168 MU, resulting in a shortfall of 5,471 MU.
This shortfall has risen by nearly 43% y-o-y from 3,825 MU in April-October, 2021 and is expected to breach the 5,747 MU level attained in FY22.
The MoP has put forward the proposal of optimisation of surplus generation capacity before stakeholders for consultation, so that the policy can be finalised much before the summer season next year.
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