The Brihanmumbai Electricity Supply and Transport (BEST) Undertaking, on Tuesday, decided to buy 300MW of power from Indiabulls Power Limited. The decision is aimed at meeting the island city’s growing demand for electricity, which is expected to touch 1,300MW by 2016. The BEST distributes power to the island city.
“Considering major development projects like Dharavi redevelopment and MMRDA’s business hub project in Wadala, the estimated demand for power in the city is expected to touch 1,300 MW by 2016,” said OP Gupta, General Manager, BEST. “Therefore, we are making a provision to meet this demand in advance so that we are not forced to buy power at higher rates from open market.”
The proposal to purchase power at Rs. 3.42 per unit (variable) was approved by the BEST committee on Tuesday. This will be applicable within 48 months after signing the agreement. The BEST will soon enter into a 25-year long power purchase agreement (PPA) with Indiabulls Power Ltd. The power would be sourced from Indiabulls’ Nashik plant.
“We have taken the committee’s approval today. We will now go to the Maharashtra Electricity Regulatory Commission for approval. Once [the approval] is received, the agreement will be signed within 10 days and power will be received 48 months later,” Gupta informed.
Currently, the BEST buys most of its electricity (932 MW) from Tata Power, the sole long-term supplier till 2016. In the next two years, the undertaking will invite bids to appoint a supplier who can provide 932 MW of power. To meet the high demand for power during summer, the BEST has entered into short-term agreements with open market traders for 50 MW of power. The additional 50 MW supply will be made from May 15 to June 30.