Foreign coal-fired units will be able to sell expensive electricity on the exchange

New Delhi. With an order from the Central Government, the availability of electricity in the power exchange is expected to increase. Power generated from expensive foreign coal can be available on the power exchange for up to Rs 12 a unit. With this, it will be easy for other states, including Uttar Pradesh, to mobilise additional power in the scorching heat. The 13 foreign coal-fired generating units in the country have a total capacity of 17,600 MW.

In view of the increasing demand for electricity due to scorching heat, the Central Government has issued an order under the authority of Section 11 of the Electricity Act, asking everyone to run the units at maximum capacity. Since foreign coal is many times more expensive than domestic coal, the electricity produced from these units is also expensive. It has been clearly stated that even after the PPA (Power Purchase Agreement), if the concerned state does not take electricity due to cost, then the producer can sell his electricity on the power exchange. The profit from this will be 50-50 percent divided between the state, the PPA, and the producer.

It is worth noting that during the power crisis in the past, Chief Minister Yogi Adityanath had arranged for additional power and instructed the people of the state to supply it according to the schedule. The corporation also tried to get additional power from the power exchange, but due to non-availability of electricity from the exchange, the village could not get supply even for 10 hours instead of 18. With the latest order from the Center, there will be every possibility of getting additional power from the exchange anytime, if it is expensive.

Uttar Pradesh State Electricity Consumer Council President Awadhesh Verma, questioning the related order of the Center, said that earlier pressure was made to buy 10 percent foreign coal and now consumers will get costly electric shock due to electricity from foreign coal-fired units. But the private power producers will benefit. For the betterment of the energy sector, Verma has once again demanded from the Prime Minister to conduct a CBI inquiry into the entire matter.