Business

Bottlenecks hold up project execution

The current spell of power shortage, faced by the northern, western and southern regions, is likely to become worse, if one were to go by the projections of the Central Electricity Authority (CEA) for 2008-09.

In its load generation balance report, the Authority has stated that the northern and western regions will suffer a shortage of net energy of 1.2 per cent and 2.4 per cent, respectively, in September whereas the southern region will have a surplus of 1.2 per cent. However, going by the reports from the regions, the southern region along with the western region is experiencing acute shortage. One reason cited for the power shortage in the south is the failure of southwest monsoon.

According to the CEA, the shortage will aggravate further. Between October and March, the shortage in the north will be in the range of 10-13 per cent; in the west, around 20 per cent and in the south, between 9 per cent and 18 per cent.

The country’s overall deficit in terms of net energy will be 8.8 per cent and in terms of demand during peak hours, around 18 per cent. In absolute terms, the figures of deficit are: 70,616 million units (mu) and 21,701 MW.

[The CEA’s report is finalised after consultations with the States and other players in the power sector and eventually, approved by the Union Power Ministry. It does not take into account short-term exchanges through bilateral contracts or traders.]

It is well known that the country is suffering from the failures of the past. Inadequate capacity addition has assumed greater proportions now, as the capacity addition has not been in proportion to the growth that the economy witnessed in recent years. A senior official in the CEA says that thermal power plants in various States, with a combined capacity of nearly 3,800 MW, have not started generating power, though the plants were supposed to be commissioned. If power from these plants is now available, the intensity of the problem will be less.

Energy experts call for massive and sustained efforts to thrash out bottlenecks that are holding up the execution of projects that have been sanctioned.

R. V. Shahi, former Union Power Secretary, calls for early resolution of issues concerning gas allocation. Cheaper power will be available and he estimates that per unit cost will be around Rs. 2.30. Open cycle power plants can be commissioned in 18 months and combined cycle units in two years, he notes.

A former official of the Neyveli Lignite Corporation says land acquisition problems will have to be resolved on a war footing so that expansion projects, either in respect of mining or power generation, can be completed expeditiously.

Handling capacity at harbours will have to be increased proportionately and this factor has to be accounted for when thermal power projects, linked to coal import, are approved.

Mr. Shahi says States have to give greater attention to demand side management. Industry and other high-end consumers of electrical power have to be sensitised on energy conservation and energy efficiency. Greater emphasis should be given to the use of light emitting diodes and compact fluorescent lamps, which consume less power.

© Copyright 2000 - 2009 The Hindu