BHUBANESWAR: Odisha Power Generation Corporation (OPGC) is in the process of renovating and modernising the first two units (2 X 210 MW) of Ib Thermal Power Plant at Banharpali at an estimated cost of `580 crore to extend the life of the plant by another 15 years beyond June 2026.
The first and second units of the thermal plant, commissioned in 1994 and 1996 respectively, have completed 28 years and 26 years and were showing signs of deterioration resulting in forced outages, reduced output, decrease efficiency and an increase in the cost of generation.
After renovation, which will take another two years, the two units will function at their full capacity and continue to supply power to the state at a rate cheaper than power sources from other thermal generation sources, OPGC sources said.
“Grid Corporation (Gridco), the state’s power trading utility, which had signed a power purchase agreement (PPA) with OPGC is currently buying bulk power from the two units at Rs 3 per unit. After capital expenditure of Rs 720 crore including Rs 140 crore for the construction of the ash pond, the average cost of power will be in the range of Rs 3.25 to Rs 3.30 per unit as there will be no implication of central transmission charges and losses,” said Gridco Managing Director Trilochan Panda.
Panda who accompanied additional chief secretary, Energy Nikunja Dhal during his visit to Ib Thermal Power Plant in Jharsuguda last week where the latter reviewed the progress of renovation and modernisation (R&M) works, said OPGC being a state generator it is advantageous to Gridco to avail full entitlement of power from the extended useful life of 15 years at a reasonable price.
As per Gridco's estimate, there will be a shortfall in peak demand of around 1,105 MW in the state in 2026-27 which may go up to 1,195 MW in 2029-30. The two units of OPGC will come to the aid of the state to meet its demand.