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State-run power trader Gridco Ltd has set a target to earn Rs 800 crore revenue out of power trading in the current fiscal. This is almost double of what it earned from this business last year.
Gridco has set the target betting on availability of more power from private producers (slated to commission their projects during the year) and good monsoon, which will ensure higher hydro power generation.
"The power situation is better compared with previous year. Last summer, the average hydro output was within 250 Mw while this year it hovers around 1,000 Mw. And if the monsoon is favourable, then Gridco will be in a position to sell extra power and earn about Rs 800 crore from this business," said a government source.
In 2012-13, total revenue earned from power trading stood at Rs 413.55 crore, including Rs 14.8 crore income via trading through power exchanges. Gridco mostly sells power through bilateral agreements, which are long term power supply commitments.
The average power demand of the state is around 2,400 Mw while Gridco is able to procure more than 3,000 Mw power from different sources, including state share from central pool, power generated by state and private utilities in the state, captive power plants and smaller solar and bio-mass projects.
Because of improved power supply, none of the four power distributing companies (discoms) of the state have declared scheduled power cuts this year, unlike previous years. Gridco has said that barring sudden power plant level failure due to technical snags, there will be no power cuts this summer.
"It is true that power demand has been poor in many areas due to shutdown of many sponge iron plants in western Odisha. However, it is gradually improving with the onset of summer," said A K Bohra, chief executive officer of Central Service Office (CSO), the umbrella organisation of three Reliance Infra-managed discoms in Odisha.
Despite the summer demand, Gridco is upbeat about having surplus power betting on power supply from IPPs, which are scheduled to go on stream during next few months.
"GMR Energy is offering the state to buy all 350 Mw power produced by its first unit. Three other IPPs such as Monnet Power Company, Maa Durga Power and Ind Barath are expected to start generation this year. So Gridco can make money out of surplus power trading," the sources said. As per state government norms, all private power producers have to supply a certain fraction of their power to Gridco at a rate fixed by Odisha Electricity Regulatory Commission (OERC). They are at liberty to sell entire power to Gridco too.
