Odisha eyes long-term power trade with Bangladesh, aims to supply 250 Mw

State may have a thermal power glut of over 1,600 Mw from 2020, as two super critical units are set to be commercialised by then

In what could be its first trading of power with a foreign nation, Odisha, via its bulk purchaser cum trading entity Gridco, is aiming at long-term supply of power to Bangladesh from 2020 onwards. The state is looking to start supplies of uninterrupted power of 250 Mw from 2020 which will continue till 2033.

Odisha is expected to have a thermal power glut of over 1,600 Mw from 2020, as two super critical units of 660 Mw each owned by its PSU Odisha Power Generation Corporation (OPGC) are set to be commercialized by then. The state government will also be entitled to 800 Mw of power as its share from NTPC's ensuing 1600 Mw super thermal power station at Darlipalli near Sundargarh.

Gridco has qualified at the technical cum commercial tenders floated by the Bangladesh Power Development Board (BPDB) Financial bids are set to be invited in the next 15 days.

"We will place aggressive price bids. That apart, we are also prepared to participate at all the future tenders floated by the Bangladesh power department. Power trade with Bangladesh will fetch higher margins for Gridco compared with selling them at the volatility ridden energy exchanges. Tata Power is assisting us in the process”, said an official with direct knowledge of the matter.

Gridco will despatch power to the Murshidabad power sub station in West Bengal and it will then be supplied to BPDB. Power evacuation is being done through the existing network of Power Grid Corporation of India Ltd (PGCIL).

In addition to Gridco, Adani Power, Damodar Valley Corporation (DVC) and West Bengal state power utility are in the fray for providing power to Bangladesh. Previously, DVC has won bids for sale of 300 Mw power to Bangladesh for a period spanning 15 years. The PSU's power contract is through NTPC Vidyut Vyapar Nigam Ltd (NVVN). The short-term supply will commence from June 2018 and continue up to December 2019 while the long-term power supply will begin from January 2022 and will be up to May 2033. DVC has an installed capacity of over 7000 Mw and the power sale to Bangladesh offers an opportunity to the corporation to shore up its revenues.

Maharatna company NTPC, too, has bagged one of the Bangladesh tenders to supply 300 Mw. NTPC will supply this power for 15 years at an estimated tariff of Rs 3.42 per unit. At the financial bids of a previous tender round opened by BPDB, NTPC subsidiary NVVN had emerged as the lowest bidder in both the short-term and long-term category. NTPC hopes electricity sale to commence from June 2018 after the commissioning of the 500 Mw HVDC (high voltage direct current) connection between India and Bangladesh. 

Adani Group is working on 1,600 Mw coal-based station at Godda (Jharkhand), home to some of the prolific coal deposits in the country. The Adani project is meant for sending power to Bangladesh.

As of now, India exports 600 Mw electricity to Bangladesh. Union power minister R K Singh had earlier announced the country will tap foreign markets like Nepal, Sri Lanka and Bangladesh to evacuate its surplus power. A report by the Institute for Energy Economics & Financial Analysis (IEEFA) believes India exporting electricity to the new markets of Nepal, Bhutan, Bangladesh and potentially Sri Lanka and Myanmar would accelerate system demand growth and improve thermal capacity utilisation, alleviating some of the ongoing stranded asset burdens.