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Power utilities report 2.9 bn units generation loss in Q1

The loss was attributed to shortage of coal

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T E Narasimhan Chennai

The power utilities in the country have reported a generation loss of about 2.9 billion unit (BU) between April and June 2012.

The loss was attributed to shortage of coal.

Meanwhile, the Power Ministry has said the utilities are advised to import 46 MT coal (equivalent to 69 MT of domestic coal in view of higher calorific value of imported coal).

K C Venugopal, Minister of State for Power told Rajya Sabha that between April and June, 2012, power generated using coal was 163.06 billion unit against the target of 153.85 billion unit, an increase of 105.98% and a growth of 13.68% over the actual generation of 143.44 billion unit during April to June, 2011.

“The power utilities have, however, reported a generation loss of about 2.9 billion unit (BU) due to shortage of coal during the period April-June, 2012,” Venugopal said.

He added, against a requirement of 476 Million Tonne (MT) domestic coal (for meeting the generation requirement from coal based thermal power stations) availability of indigenous coal was estimated to be around 407 MT.

“In order to mitigate shortage of coal, power utilities have been advised to import 46 MT coal (equivalent to 69 MT of domestic coal in view of higher calorific value of imported coal),” he said.

He further said, his Ministry has requested the Ministry of Coal that Fuel Supply Agreement (FSA) are to be signed based on the model FSA signed in 2009 with only change in trigger level of  disincentive at 80%.

As per the new FSA, if for a year, the level of Delivery by the Seller (CIL), or the Level of Lifting by the Purchaser (power developer) falls below Annual Contracted Quantity (ACQ) with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (Failed Quantity).

For less than 100% but upto 80%, the rate of compensation for the failed quantity is nil and less than 80% is 0.01% (to be operative after a period of three years from the date of signing of the FSA).

"This clause is not acceptable to Ministry of Power and Ministry of Coal has been requested to change this clause," Venugopal said.

Ministry of Coal has advised CIL to consider the suggestions made for revision of clauses of FSA to be signed in respect of the plants having long term Power Purchase Agreements (PPAs) with DISCOMs and commissioned during between 2009 and 2013, said the Minister.

PLF of thermal plants was 72.12 % in April 2012

The installed thermal plants (coal and lignite) in the country have reported a plant load factor of 72.12% between April and July 2012.

Venugopal told Rajya Sabha that the installed generating capacity of thermal (coal and lignite) power plants as on July 31, 2012 was 117,283 MW and the generation from these plants during April to July 2012 was 225.529 Billion Units with an overall PLF of 72.12%.

Due to reduction in Plant Load Factor (PLF) of thermal power plants i.e. lower utilisation of installed capacity, the effect on cost of power generation would be higher fixed charge (capacity charge) in terms of per unit of electricity.

As of August 2, 2012, the monitored capacity was 1,80,361 MW and the available capacity was 139,307 MW. Plants of 10,314 MW were under shut down due to planned maintenance and 28,053 MW was under forced outages and capacity of 2,867 MW was out due to other reasons like less availability of water.

Therefore, the actual capacity supplied is always less than the monitored capacity, said the Minister.

The average PLF of coal based thermal power plants was 71.93% during 2012-13 (April–July, 2012). While some plants operated above national average PLF, on the other hand some could not achieve the national average PLF.

The reasons for low PLF of these plants are vintage of the units, the technological obsolescence, increased forced outages, inadequate fuel supply and transmission constraints on states.

 

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First Published: Aug 14 2012 | 11:54 AM IST

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