Power purchase worth Rs. 7776 crore is 42% of energy requirement

V K Gupta

15 December, 2011

Power purchase worth Rs. 7,776 crore is 42 per cent of Punjab's total energy requirements will cost 38 per cent of total projected revenue requirement made by PSPCL for next financial year.

POWER PURCHASE will be the major component of energy requirement of Punjab as per projections made by Punjab State Power Corporation limited (PSPCL) for next financial year. The total revenue requirement submitted by PSPCL for 2012-13 is Rs. 20,415 crore and power purchases component is Rs. 7,776 crore

The gap between demand and supply is met mainly through power purchases from sources outside the state. PSPCL proposes to meet Punjab’s energy net requirement of 36,703 million units (MU) by purchasing net 18,917 MU from the central generating stations and other external sources.
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The major sources from, which PSPCL procures Power, are Central Generating Stations, Traders, Co-Generation Plants and Banking Arrangements. The gross power purchase quantum has been increasing with every passing year .The actual power purchase was 15,460 MU for 2010-11, the revised estimate for current year based on actual purchase for first six months is 17,013 MU and projected power purchase for next year is 19,682 MU.

The power purchase cost for next year will be Rs.7, 776.03 crore. The revised power purchase cost for the current financial year are 6099.73 crore whereas the actual power purchase in 2010-11 was worth Rs. 5,929.39 crore.

The total energy requirement in two years has increased from 40,909.83 MU to 44,637.57 MU, an increase of 3,628 MU. During the same period power purchase has increased by 4,242 MU.Net thermal generation is expected to increase from 16776.51 MU to 17,374.84 MU based on assumption that one unit of Talwandi Sabo thermal will come in November 2012.

Net Power Purchase for next financial year will be 18,917.42 MU comprising of 14,420.94 MU under long term power purchase agreements and 4,496.48 MU from other sources and short term purchases.

It may be mentioned that PSPCL drew 770.36 MU less of its allocated power share from northern grid due to high power purchase component keeping in view the pending elections in state.

It may be further added that under banking arrangements the power purchase and sale cost is 323 paise per unit. The average power purchase from traders such as Mittal, JSW,Shree Cement

Tata, is also around 323 paise per unit.