Maha rushes to arrange temporary power supply amid shortage, Cabinet meeting soon

Mumbai: Amid a shortage of about 1,000 MW of electricity during peak hours, the MVA government is taking measures to tide over the crisis

Mumbai: Amid a shortage of about 1,000 MW of electricity during peak hours, the MVA government is taking measures to tide over the crisis. Maharashtra cabinet on Thursday approved the setting up of a solar power park of up to 2,500 MW capacity. Additionally, the Cabinet is also likely to hold a special sitting on Friday to approve power purchase agreements to meet the rising electricity demand.

The coal inventory at the state-owned MahaGenco’s power stations has plunged to a critical level (HT FILE PHOTO)

The rising power demand has added to the woes of the state-run power distribution utility. The coal inventory at the state-owned MahaGenco’s power stations has plunged to a critical level, and the situation may worsen in case of a further surge in the demand and bottlenecks in coal supply.

The state is planning to ink short-term power purchase agreements (PPAs) for three months to tackle the situation and revise some existing PPAs. Officials said the state power companies are planning to sign up 760 MW of supply through this route. A senior official said that a special sitting of the cabinet was likely to be convened on Friday to approve the PPAs. “There is a shortfall of around 1,000 MW during peak hours. We are purchasing power through the energy exchange… however, this power is costly as we have to pay around ₹8 per unit for it. Hence we are planning short-term PPAs for three months to get cheaper electricity,” the official said.

He added that the NTPC was giving an extra 700 MW of power to Maharashtra and the Koyna hydel project was being run at peak capacity in times of a supply crunch.

The state-wide coal shortage has coincided with a steep rise in temperatures across March and April, with heatwaves being felt not just in typically warmer regions of Madhya Maharashtra and Vidarbha, but the Konkan as well. On March 14, a ‘severe heat wave’ swept through Mumbai, with both the India Meteorological Department’s (IMD) monitoring stations at Santacruz and Colaba recording significantly above normal temperatures during the day -- at 39.6 degrees Celsius and 39.4 degrees Celsius respectively. Official forecasts show that Mumbai and the adjoining Konkan area have a 75% chance of above-normal temperatures in April, which does not bode well for the power sector.

Meanwhile, the Ultra Mega Renewable Energy Power Park (UMREPP) project of 2500 MW capacity--approved by the state cabinet on Thursday--will be the largest solar power park in the state. It will be developed by a special purpose vehicle (SPV), a joint venture between the Maharashtra State Power Generation Company Limited (MahaGenco) and the NTPC Renewable Energy Ltd (REL), which is a subsidiary of the National Thermal Power Corporation of India Limited (NTPC). The two utilities will hold a 50 percent stake each in the venture.

According to the UMREPP policy, announced by the Union Ministry of New and Renewable Energy (MNRE) in 2020, these parks can be developed by state utilities or central public sector utilities or their special purpose vehicles (SPVs). Apart from making solar energy available at competitive rates, the scheme aims to overcome issues like lack of availability of land and shortage of transmission capacity, road infrastructure and water.

“The land for the project is yet to be identified. This will be the largest such solar power park in Maharashtra,” said a senior official from MahaGenco. The state power department will be the nodal agency for the development of the solar park.

The project is expected to cost ₹1,726.62 crore and may generate 4,599 million units of energy annually. Each unit will cost ₹2.50 to ₹2.60. The developer will be appointed through a tariff-based competitive bidding process.

The state’s new renewable energy policy aims at developing 17,360 MW of such projects, including 12,930 MW in solar energy, by 21 March 2025. So far, projects with a 9,305 MW capacity are operational and work on another 2,123 MW worth of solar installations is underway.

MahaGenco has a 13,902 MW capacity, including 9,750 MW in coal-based thermal power, 2,580 MW in hydropower, 672 MW gas and 207 MW in solar energy. The NTPC has an installed capacity of 68,567 MW, including 56,624 MW in coal-based thermal power.

(With inputs from Prayag Arosa-Desai)