CERC for firm capacity during peak loads

New delhi: To reduce power shortages and prevent frequent load shedding during peak hours, the Central Electricity Regulatory Commission has asked the Power Ministry to actively consider setting up dedicated capacities to meet peak electricity demand in different parts of the country.

Peak period generally refers to the time when electricity demand is high compared to ordinary time. Grappling with severe power shortages, many distribution companies resort to load shedding -- stopping power supply for a specific period to meet the overall consumer demand -- and overdrawal from the grid.

“Projections show that although energy availability in the country by 2011-12 is expected to improve substantially, thereby, reducing the energy shortages to as low as two per cent, the peak shortages may continue to be at 6.5 per cent,” CERC chairperson Pramod Deo said in a recent letter to Power Secretary P Uma Shankar.

Deo stressed on the need for “pro-active action for setting up separate capacity for meeting peak demand in different parts of the country”.

Estimates from the Central Electricity Authority (CEA) indicate that peaking shortage of electricity in 2011-12 is projected at 12.9 per cent. The country saw a power shortage of 8.5 per cent in 2010-11, which is projected to further rise to 10.3 per cent this fiscal. “Traditionally, planning for capacity addition has been done keeping in view only the base load demand and no conscious effort has been made to set up capacities dedicated for meeting peak demand.” “Although, there is a provision in the competitive bidding guidelines for separate bids for peaking power plants, past experiences show that the distribution companies (Discoms) rarely requisition peak load servicing capacity through the competitive bidding route,” Deo said in his letter to Power Secretary.

Going by estimates, electricity distribution losses touched about Rs 70,000 crore in 2010-11.