HYDERABAD: Solar Energy Corporation of India (SECI) Limited, a Central government PSU under the Ministry of New and Renewable Energy, told the Electricity Regulatory Commission to consider the capacity addition plans of the TG Discoms. The SECI, however, told the ERC that in-principle consent should not restrict the Discoms to a single procurement route.
“ERC should allow them to procure through any suitable route, including Renewable Energy Implementing Agency (REIAs) such as SECI, alongside TG Genco and TGREDCO, so that power is procured in the most cost-effective manner.
Procurement through SECI draws wider bidder participation because of demand aggregation across states and SECI’s robust payment security mechanism and has generally led to discovery of the most competitive tariffs,” the SECI said.
A public hearing on the proposal of the Discoms to purchase renewable energy was conducted by the ERC here on Tuesday.
The Discoms proposed to purchase 800 MW standalone Wind generation capacity for 25 years, 3,000 MW solar power capacity sanctioned under Telangana Green Energy Policy to be integrated with 6,000 MWh BESS (1,000 MW x 6Hrs) for 25 years, 2,000 MW Renewable Energy Round-the-Clock (RE RTC) power for 25 years integrated with appropriate Energy Storage System and Peak FDRE 2,000 MWh (500 MW x 4 Hrs) for 15 years.
The SECI in its reply to this said that SECI has earlier discovered very competitive tariffs in solar with storage tenders: `2.86-2.87 per kWh of solar power with four hours of storage and `3.12-3.13 per kWh of solar power with six hours of storage. If the TG Discoms provide their consent for this type of power, SECI can float a fresh tender for the requisite quantum on the TG Discoms’ specifications, the SECI said.
In its reply, the ERC said that the submission of SECI was noted. TG Discoms submit that the proposed procurement is aimed at securing renewable power through the most suitable procurement route, taking into consideration the state’s demand-supply requirements, tariff competitiveness, total landed cost and reliability of power delivery. Accordingly, the procurement option that best serves the interests of the State and its consumers will be considered, the ERC said.
BRS questions move to purchase add’l 7,800 MW
BRS leader and former energy minister G Jagadish Reddy questioned the state government’s move to purchase an additional 7,800 MW of thermal, solar and hybrid power, alleging that it was unable to properly supply the 27,000 MW already available.
Speaking at a public hearing conducted by Electricity Regulatory Commission (ERC), he said farmers were facing power cuts despite sufficient power availability, with supply reportedly delayed by half an hour and discontinued ahead of schedule.
He alleged that the government had failed to develop power infrastructure, including substations and transmission lines, and was instead relying on facilities established during the previous BRS regime.
He urged the ERC to reject unnecessary power purchases that could increase costs and burden consumers through higher tariffs and true-up charges.
He demanded that the government utilise existing power plants and hydel resources, and strengthen state-owned GENCO and Singareni instead of favouring private companies and purchasing electricity at higher rates.
Replying to the objections raised by some activists, the Discoms clarified that the proposed renewable energy and BESS capacities will help meet demand during deficit periods, shift renewable energy to peak hours and reduce dependence on high-cost short-term market purchases.
Robust payment mechanism & competitive tariffs
The SECI said that the ERC should allow the Discoms to procure through any suitable route, including Renewable Energy Implementing Agency (REIAs) such as SECI, alongside TG Genco and TGREDCO, so that power is procured in the most cost-effective manner.
Procurement through SECI draws wider bidder participation because of demand aggregation across states and SECI’s robust payment security mechanism and has generally led to discovery of most competitive tariffs, it said.