HYDERABAD: Telangana faces a power shortage due to the huge demand from Hyderabad city, industries and agricultural pump-sets. The Andhra Pradesh Electricity Regulatory Commission (APERC) advisory of 16 June 2014 to the Telangana Government says there are 18.14 lakh electric- pump sets in use. APERC estimates the total power consumption these pumps at 9,771 MU per year. At Rs 5 per unit this cost is estimated to be Rs 4,874 crore per year. This power supply requires generating capacity of 1,133 MW, which at Rs 7 crore per MW means a capital cost of Rs 8,000 crore. APERC estimates that some Rs 860 crore a year can be saved if “Demand Side Management” measures are adopted - which has not been possible so far. A better way is to carry out a one-time “Supply Side Management” project. That will require replacement of all existing pumps by solar-pumps which will be given free of cost to wellfarmers by Telangana Discoms. In India, the cost of solar-pumps varies between Rs 3.5 to Rs 5 lakhs per unit. However, costs in the US average Rs 3 lakhs. These units are simple and come in kits which farmers can erect themselves. In bulk supply unit prices may fall further. Installing 18-lakh solarpumps would cost Discoms about Rs 54,000 crore. This is a huge amount but it makes economic sense. Till 2004, the Government of India (GoI) provided a subsidy of 80% of the cost of solar-pumps. Thereafter, this was reduced to 30%.
How can solar-pumps make sense as opposed to grid power?