Genco projects delay takes toll on Discoms

Hyderabad: With the delay in completing the construction of power projects of the Power Generation Corporation and no new plans on to raise the installed capacity through it, the power distribution companies of the State may have to continue purchase power in the open market at a higher rate to meet the requirements, especially in summer.

As the demand for the power is low in the State, the Discoms have purchased about 600 MW on an average in this month. However, this may reach to 2,000 MW in the summer.

Construction of the power projects being planned by the Power Generation Corporation in the State is going on at a slow pace. It is yet to complete the Bhadradri and Yadadri Thermal stations.

Though it has been planned to complete the construction of the Bhadradri Thermal Power Station (BTPS) by end of this year, the objective may be achieved in March next year. The construction of Yadadri Thermal Power Station (YTPS) is likely to be completed in 2021.

The Discoms of the State are purchasing power from the Genco, Singareni Collieries and NTPC. They can purchase power from Genco plants on a long-term basis. The installed capacity of the Genco is 5,852 MW, including thermal and hydel. The hydel stations work only during the monsoon season.

The installed capacity of the thermal stations is 3,382 MW and they would be available throughout the year. The Genco is producing about 60 MU every day through them. As the power from Genco would be available on long-term basis, the Discoms would have an opportunity to plan their purchases properly.

The price of power available in the open market keeps changing everyday depriving Discoms the opportunity to plan the purchases. The price in open market varies from Rs 1 to Rs 7 per unit.

The demand for power in the State is about 170 MUs and the Discoms have been purchasing remaining 110 MUs from other sources like NTPC, Singareni and open markets. It has been purchasing about 5,000 MW form these sources. This may go up to 7,000 MW in the summer.

The Genco has been constructing 1,070 MW BTPS and 4,000 MW YTPS. Out of them, two units of the BTPS have started production of power in this year. Another 600 MW capacity would be added by March next year. The YTPS may be operationalised in 2021.

After the commissioning of these two projects, the installed capacity of the Genco would go up to 10,892 MW by 2021. However, Discoms have to purchase power from the other sources since the demand would grow by at least 28 per cent.