India is set to witness a historic rise in power generation this year, with the current heavy rainfall continuing its upward trajectory and feeding the country’s dry hydro reservoirs.
The latest data obtained from the Central Water Commission (CWC) show that water storage position in the country’s 81 hydro reservoirs has gone up to a record high of 91 billion cubic meters (bcm), around 60 per cent of the total capacity of 151 bcm. This mammoth water storage recorded in the week ended September 1, exceeded last ten years’ average of 58 per cent.
The storage level was 45 per cent of the total capacity at the same time last year.
This has led to a consequent rise in hydro power generation as well, improving the prospects for power availability and easing the perennially high power deficit in the country. Hydro power plants account for around 30 per cent of the overall 163,000 Mw of installed electricity-generation capacity in India.
The country’s hydro power plants have generated over 51.7 billion units (BUs) of power since the beginning of the current financial year. This is over 2.2 BUs higher than the last year’s hydro generation during the same period. Accordingly, daily generation of hydro power in the country has also increased by at least 26 per cent in the past month to 476 million units currently. Daily generation from NHPC Ltd, the country’s largest hydro power producer, alone has gone up by over 6 per cent, compared to last month, to 83 million units.
“Power availability has improved due to higher generation from hydro stations, which we were expecting, and this will further pick up. In the April-July period this year, hydro generation grew by 5.5 per cent, compared to the same period last year,” said Power Secretary P Uma Shankar.
Of the 81 reservoirs across the country, 52 have recorded storage levels higher than the last decade’s average storage. These dams, currently brimming with water, include Gobind Sagar and Pong in Himachal Pradesh, Thein in Punjab, Tehri in Uttarakhand and Nagarjuna Sagar and Srisalam in Andhra Pradesh. Data show that water storage has been particularly high in the North, West and Central India.
Last week, flood gates of two dams in Andhra Pradesh had to be opened to release excess water. Similarly, water level at the Ukai reservoir in Gujarat recently reached 333 feet, marginally below the danger mark of 345 ft, due to the release of an excess 40,000 cusecs of water from Hathnur dam in Maharashtra. A similar situation in 2006 had led to floods in the low-lying areas in the state, including Surat, where the dam is located.
| BRIMMING CURRENT STORAGE POSITION IN MAJOR RESERVOIRS | |||||
| Name of the reservoir | Live capacity (bcm) | Current storage (bcm) | Storage as a percentage of capacity | ||
| Current year | Last year | Last ten years’ average | |||
| Gobind Sagar | 6.2 | 5.8 | 94 | 51 | 75 |
| Pong Dam | 6.1 | 5.4 | 89 | 30 | 63 |
| Thein | 2.3 | 1.8 | 80 | 24 | 51 |
| Shetrunji | 0.3 | 0.2 | 89 | 53 | 58 |
| Ukai | 6.6 | 5.0 | 76 | 36 | 65 |
| Bhadar | 0.2 | 0.2 | 100 | 46 | 57 |
| Koyana | 2.6 | 2.4 | 91 | 90 | 93 |
| Tawa | 1.9 | 1.9 | 100 | 98 | 90 |
| Indira Sagar | 9.7 | 3.5 | 37 | 45 | 33 |
| Mahanadi | 0.8 | 0.7 | 94 | 56 | 77 |
| Srisailam | 8.2 | 8.2 | 100 | 69 | 71 |
| Nagarjuna Sagar | 6.8 | 5.7 | 84 | 13 | 50 |
| Total for 81 reservoirs | 152.0 | 91.0 | 60 | 45 | 58 |
| Source: CWC; bcm: Billion Cubic Metres | |||||
Uma Shankar also said the higher hydro generation would take care of any slump that might occur in thermal production, but only marginally. “This would also have consequent impact on short-term power prices,” he said.
The average price of power traded in the market has also come down drastically, keeping up pace with the improving hydro situation. The latest data compiled by the Indian Energy Exchange (IEX) show that the average price of electricity traded on it so far in the current month has slumped to Rs 2.34 per kwh. Power was traded over 70 per cent higher at an average of Rs 7.91 per kwh at the beginning of the current financial year, when a nationwide heatwave had led to drying up of the reservoir levels.
Increased hydro power generation is, however, not the only reason for low prices. “Another reason is the decreased demand. States are continuing with load shedding. Also, demand from the agriculture sector has come down due to fewer irrigation pumpsets running now. In addition, wind power availability has increased. While around 90,000 Mw of power is currently available at the exchange, demand is only for 30,000 Mw,” said IEX Chief Executive Officer Jayant Deo.
Total power traded at IEX has increased by over 106 per cent, from 574 million units in April to 1,186 million units in August. IEX alone accounts for more than 90 per cent of the electricity traded at the two power exchanges in the country.
The moderating power prices due to heavy rainfall are set to reduce the subsidy burden of states, which otherwise have to procure power at a high cost to tide over the electricity crisis. The downward spiral in the prices could also affect profit margins of merchant power generators, as they account for a major chunk of the power traded at the exchange and earn profits in the lean period.
