Peak demand over, PSPCL to sell surplus power from November
Power utility is also looking to bank power, meaning it will supply electricity to states during winters and receive it from them in summersUpdated: Sep 01, 2018 12:59 IST
With the mercury dipping, leading to a reduction in power demand, the Punjab State Power Corporation Limited (PSPCL) has surplus power that it plans to sell to other states. It is also looking to bank power, meaning that it will supply electricity to states needing it during winter and receive it back in summer.
As part of its efforts, the power utility has floated tenders to sell 6,000 MW power from November 1, 2018, to March 31, 2019. From November 1, the PSPCL will sell 2,400 MW and bank 800 MW, each month. The banked 4,800 MW will be returned to the PSPCL from June 15, 2019, to September 30, 2019.
Previously, the PSPCL had failed to anticipate the situation and had suffered losses. “The hill states and those in the South need power during winters. Thus, we have already floated our tenders to draw early bidders,” said an official, adding that they were also looking for players in the private industry to buy power from the utility.
Even after shutting down the Bathinda plant and two units of the Ropar plant, the utility is power surplus. From a demand of between 10,000 and 13,000 MW per day during the peak season, there is a sharp dip to 6,000 MW in winters. So, the utility shuts some of its facilities as also private plants. However, it continues to pay fixed cost (around ₹2,700 crore) to private thermal plants without taking power from these.
“The fixed cost to private plants, in case of non-withdrawl of power, is costly. Thus, we have decided to run these plants and sell the electricity to other states. We are also looking to bank electricity with other states, which they will return to Punjab during our peak season from June to August,” said a PSPCL official.
When contacted, PSPCL CMD Baldev Singh Sran said, “I am doing everything I can to save cost. I cannot afford to pay fixed cost for idle power units and thus we have started the process to sell power. Even selling power at cost-to-cost, will save our fixed cost. This will ultimately reduce power tariff.” He added that the PSPCL was looking to bank power with Orissa, Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu and Kashmir and Rajasthan.
The power utility is also looking to bank power, meaning it will supply electricity to states during winters and receive it from them in summers