The Hindu Business Line : Higher cost of thermal power deters lifting of load-shedding in Kerala

CYCLICAL power cuts during peak hours in Kerala is likely to continue despite the good rains and subsequent rise in water levels in the State's major reservoirs.

With the water available currently, 805 million units can be generated, a senior official of the Kerala State Electricity Board (KSEB) told Business Line. Withdrawal of the 30-minute load-shedding in the evening hours will involve high-cost thermal power, which the KSEB wants to avoid.

The official said that during peak hours, the hydel projects were run at full capacity and hence the additional demand during this period will have to be met from thermal sources.

Cost of thermal power, using naphtha as fuel, has gone up sharply following rise in the price of naphtha to around Rs 18,000 a tonne. In fact, the variable cost of thermal power alone is estimated at around Rs 3.60 per unit. This has compelled the Board to stop drawing thermal power from the power plants of both public and private sectors. It has also shut down its diesel power generating units.

The current daily power demand in the State is around 31 million units. The hydel projects generate 15 million units daily, which was 12.5 million units in April last, and the balance is drawn from the Central grid. The State's share from the grid is 14.5 million units. To meet the full demand, it draws one to two million units in addition at an extra cost, which will come to Rs 2 to Rs 2.10 per unit.

"We are operating the hydel stations with conservative water management," the official said.

According to the official, power from the Central pool is the cheapest Kerala is getting. He said that existing hydel projects in the State were several decades old and hence needed renovation and modernisation. Once that is completed, the efficiency of these plants could be enhanced, he said. Besides, the official added, with conservative water management, the projects could be operated efficiently throughout the year.

Taking into account the actual power demand, the reserve for maintenance, spinning and breakdown, the installed generating capacity of the State is short by at least 450 MW.

Kerala used to receive on an average 3,000 mm rainfall in normal monsoon years. But almost the entire water received in the State flows down through the 44 rivers to the backwaters or the sea in 48 hours. The KSEB has very limited storage facility.

Depletion of forest cover is also responsible for fall in water flow into the reservoirs, the official said. Absence of mechanisms to conserve rainwater could also be responsible for the fall in the groundwater table. Measures to harness the rainwater during the monsoons need to be taken up to tap the hydel potential fully, he added.

Given this scenario, it is becoming more and more relevant to operate thermal plants using cheap fuel such as coal or LNG. If the plants using naphtha are switched over to LNG, power could be made available at an affordable cost, an energy expert pointed out. "Only then will the State have sufficient power," he added.