The Union power ministry has asked the states to ensure Gencos sell any extra power they have on the market as this will help areas facing power shortages during periods of high demand.
“It has been observed that some power generators are not offering the un-requisitioned surplus power (after meeting the requirement of the medium/long term procurer) in the power market, thus resulting in unused power capacity at the national level,” the power ministry said in a note to state power departments and CMDs of all Gencos.
Pointing out the Tariff Policy 2016, the ministry said that power stations are required to be available and ready to dispatch at all times. For optimum utilisation of un-requisitioned generation capacity of any generating station regulated under section 62 as well as those having PPA under section 63 of the Electricity Act, 2003, the generators have been permitted to sell power in the power market in consonance with the laid down policy of the Centre.
The exercise assumes significance as India enters the peak summer season, April to June, with peak power demand expected to hit 260 gigawatts (GW) from 243gw in September last year.
Earlier this month, the ministry in preparation for meeting the peak summer demand said that all thermal, imported coal-based (ICB) power plants and gas-based generating stations must offer their un-requisitioned or surplus power in power exchanges.
It also directed that compliance needs to be monitored regularly and notices issued for violation of directions.
The ministry highlighted the need for adequate coal reserves at domestic coal-based plants (DCB) to ensure uninterrupted power supply.
This move comes amid forecasts by the Indian Meteorological Department (IMD) predicting above-normal temperatures across the country from April to June.
Adding to the concerns are dwindling water reservoir levels. The Central Water Commission’s weekly bulletin indicates that water levels in 150 major reservoirs fell to 30% of their total storage capacity, with eastern and southern India seeing levels depleting rapidly owing to severe heat waves.