Buying power cheaper than generating: TS Genco

These days it is economical to buy power rather than generating it, therefore, TS Genco has reduced its power generation and Discoms are buying it from open markets.
For representational purposes (File photo | Reuters)
For representational purposes (File photo | Reuters)

HYDERABAD: These days it is economical to buy power rather than generating it, therefore, TS Genco has reduced its power generation and Discoms are buying it from open markets. The power demand in the State is not very high as of now due to good monsoon. The Genco recently reduced power generation in Kothagudem Thermal Power Station (KTPS), Kakatiya Thermal Power Station (KTPP) and Singareni thermal plants.

However, with the stoppage of power production at Srisailam due to fire accident, the officials are yet to increase the thermal power generation. “As it is cheaper to buy power in the open market, we have increased the power purchases slightly, instead of increasing power production at thermal plants,” a Genco official told Express on Tuesday.

The reason being that the demand for power is not high, it is just 170 million units per day now. “So we are managing by increasing the purchases. Buying power is cheaper,” the official source explained. 
While the contribution from Central Generation Stations (CGSs) and purchases were just 31.28 million units on August 16, the power demand in the State was 115 million units.

However, with the stoppage of power generation at Srisailam, the power from CGSs and purchases touched 79.28 million units on Sunday. The demand for power in the State on Sunday was 176.16 million units.“Real time market provides an opportunity to Discoms to efficiently balance the demand at just one hour notice at competitive prices,” said sources in Indian Energy Exchange.  While the power available in open market exchanges are priced at just `2.47 per unit, the Genco generated thermal power costs `6 to `7 per unit. 

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The New Indian Express
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