NTPC plans to acquire 5000 MW could result in increased production cost of power

NTPC announced yesterday (19 Aug 2015) that its plan to acquire badly managed and loss making Thermal Power Plants with State Electricity Boards to the tune of 5000 MW, is underway.

To this extent, they have already signed up with Rajasthan and Madhya Pradesh SEBs, Damodhar Valley Corporation among others. So far, they have signed up for 840 MWs with various players. Expert opinion is that the power cost could increase since NTPC is not bogged down by political pressures as SEBs do.

Weak monsoon resulted in lower hydel generation from the states of Karnataka, Kerala and downstream states such as Tamil Nadu and Andhra Pradesh. Karnataka SEBs have already announced lower generation for want of rainfall.

Tamil Nadu also has announced reduced generation expected from wind and hydro because of weakened monsoon. Would this affect the power situation in the southern states? It may not, feel the experts, since it would be made up by other supplies though the per unit average cost could go up for the utilities.

India's first HVDC line at 800 kV with a capacity of 6000 MW is expected to go on stream by Aug 31, 2015. Power Grid Corporation announced this in Delhi yesterday (19 Aug). It is a bipole DC line running from Agra to West Bengal. This corridor, claims Power Grid, will help in evacuating 24,000 MW from the Eastern India Hydel sources which should be coming up in near future.

Talking about evacuation, Power Grid has also announced implementation of 33 GW Green Corridor in Andhra Pradesh in its first phase connecting it to Madhya Pradesh. In the second Phase, it connects Karnataka with this network.

Green corridors and green power is becoming the special word that is driving businesses today. India has a total of 3,744 MW of solar power apart from the running wind generators. As more and more players vie for their share in solar power production, there is going to price reduction and therefore more efficient production.

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