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New electricity law: power surplus TS at Adani’s mercy

Hyderabad: From a region that was in the dark just six years ago and then emerged as a power surplus state is no notable achievement. This is exactly where Telangana now stands, thanks to the far-sighted policy and the addition of capacity in power generation that the TRS government has started in a short period since 2014.

All of these efforts could be thwarted if the center intends to buy the solar power at a high rate from a particular private sector enterprise, and take up the shield under the controversial new electricity law passed by the BJP government in the center. be pushed.

Telangana uses all three main components of generation – thermal, hidel and solar power – and it has come a long way in emerging as a power surplus state. However, it could be forced to reduce power generation, or even close some power stations to simply buy solar power at a higher rate from the 8,000 MW project of Adani Group, at an estimated cost of 45,000 million. State departments will have to buy power from the Adani plant to achieve the targets set by the Center and which will be an additional burden for the discoms.

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Shockingly, it has been reported that Adani Green Energy’s solar power project announced in June has no guaranteed customer, leading to fears that state power services will be forced to buy power generated by Adani, with the legal support of the new electricity ( amendment) 2020 Bill introduced in Parliament on 17 April.

The BJP government, in a move aimed at benefiting the Adanis, came up with the necessary regulations to force States to buy power from environmentally friendly renewable sources such as solar energy through the proposed amendment to the Electricity Act of 2003. The states must buy the prescribed power from the sources proposed by the Center, or impose fines.

The amendment seeks to establish a national power policy to promote renewable energy, especially solar and hydropower. According to the policy, states are required to purchase a minimum percentage of energy from renewable sources. In an effort to thwart the State Electricity Regulatory Commissions (ERCs) to set this percentage according to local requirements, the center appropriated their powers. While the TS ERC has set 7 percent as the target for purchasing renewable energy, the center is likely to push it to as much as 19 percent, and even further than it decides.

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The center, which also categorizes hydropower as renewable energy, acknowledges the chances that countries like Telangana could increase Hydel power production to compensate for any shortage of thermal generation, and vice versa, depending on the time of year. sustainable power project in the state as a valid power station based on renewable energy.

The new amendments to the Electricity Act beat fines on states if they buy non-renewable energy from sources proposed by the Central Power Dispatch Center in Delhi. If solar power is not purchased by Discoms, fines must be paid – ranging from 50 pais per unit in the first year, Rs 1 per unit in the second year and Rs 2 per unit in subsequent years -.

The chairman and managing director of TSSPDCL, G Raghuma Reddy, said that the decision of people sitting in New Delhi would have a detrimental effect on states like the president of TSSPDCL, G Raghuma Reddy, to purchase 19 per cent of the power generated from renewable energy sources for sale. Telangana. “If the ERC is now formed by the Center and imposed on the State, the decisions will be far from the groundwork. The ERC must be formed by the state government with people who understand the state and its people, ”he argued.

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The new law is so draconian in nature that the National Load Dispatch Center (NLDC) could ask producers to close their power-generating units with high variable production costs, which have coal-based units. This clause will adversely affect Telangana, which provides free power to farmers and has built many irrigation projects for large elevators that require cheap and sufficient power.

Source: Telangana Today

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