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Web Exclusive | May 2013

AP to buy 300 mw more on short-term arrangements

Andhra Pradesh government's Energy Coordination Cell has said that power utilities have initiated steps to commence purchase of additional 300 mw power from May 31 through short-term arrangements. This will be in addition to power from AP Genco and Central generating stations aimed at meeting the increasing demand which has shot up lately.

The Energy Coordination Cell said that these short-term purchases are being carried out to minimise the inconvenience to consumers in view of the prevailing shortage of power. The shortage has gone up primarily due to inadequate supply of natural gas to the State. The State Discoms have secured AP Electricity Regulatory Commission for calling tender for short term procurement of power to overcome the shortfall.

Twelve bidders participated following tenders on the e-procurement platform for purchase of 2,000 mw power. They quoted between Rs 4.66 per unit to Rs 7.54 per unit depending upon the location of the plant and the region.

A committee constituted for negotiations with private generators and traders decided to offer between Rs 4.30 to Rs 6.07 per unit. The State discoms have convinced generators to sell their power at Rs 5.45 per unit. The constraints of corridor between West and South is also hampering purchase of power from other regions.

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