Economy

AP Transco backs down on 50 million units of renewable power amid escalating row over tariff

V Rishi Kumar Hyderabad | Updated on July 30, 2019 Published on July 30, 2019

Though the transmission corporation is well within it s rights to back down, the move has surprised independent power producers   -  The Hindu

Wind power firms are faced with curtailment in Andhra Pradesh at a time when the power generation is supposed to be at its peak. According to sources, AP Transco is backing down on 50 million units of renewable power, particularly wind energy, and replacing it with thermal power.

This comes as a major setback to wind energy companies as generation is at its best at this time of the year. When the demand comes down, fossil fuel plants face curtailment first and the renewable energy is curtailed when there is no option.

Load factor

A power sector expert said that curtailment is well within the Transmission Corporation’s purview and can be handled at any time depending upon the load factor. Typically, the energy demand comes down during the monsoon and wind power generation spikes significantly. In fact, this is the peak season for wind power generation and lasts for about a few months.

Significantly, the backing down comes in the backdrop of the ongoing fight over power purchase agreements between AP discoms and renewable energy companies.

The latter have been asked to bring down the tariff to ₹2.44 per unit by renegotiating PPAs.

Aggrieved by the order, some of the companies have knocked at APTEL and others have approached the Andra Pradesh High Court.

The High Court had granted a stay of operation of the Government Order No 63 which sought review of PPAs and posted the matter to August 22.

While the State and its transmission corporation are well within their rights to review the demand-supply situation and curtail or back down power from various sources, the curtailment of wind power during the peak season is something the independent power producers did not expect.

Published on July 30, 2019
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