+
 Andhra Pradesh saves Rs 2,350 cr in power purchase in last two years
POWER & RENEWABLE ENERGY

Andhra Pradesh saves Rs 2,350 cr in power purchase in last two years

In the last two years, 2019-20 and 2020-21, Andhra Pradesh has saved approximately Rs 2,350 crore by purchasing electricity in spot markets at cost-effective prices.

The power utilities purchased 3,393 million units (MU) from the open market at lower prices in 2019-20 and 8,890 MU in 2020-21.

The average procurement cost, including transmission costs, was Rs 3.12 per unit, compared to the approved weighted average procurement cost of Rs 4.55/unit.

In addition to relying on spot market power purchases, state power utilities in India used artificial intelligence and machine learning for the first time to deploy a day-ahead electricity forecasting model. Every 15 minutes, this could forecast the next day's electricity consumption. This would allow for better decisions on electricity demand and supply, grid management, and lowering power purchase costs.

The state government persuaded the Ministry of Power to relinquish the 625 MW thermal power, allowing the AP discoms to reduce their financial burden by Rs 1,007 crore.

In the past, the central power grid collected central transmission utility point of connection charges from discoms based on anticipated usage on a quarterly basis. As a result, utilities were required to pay higher charges to the central grid.

In response to the AP energy department's protest, the CERC changed the methodology, resulting in Rs 350 crore in savings over the last two years.

Image Source


Also read: Govt urges electricity regulators to issue tariff orders on time

Also read: Liquidity infusion for discoms: Overdues fall Rs 15k cr in March

In the last two years, 2019-20 and 2020-21, Andhra Pradesh has saved approximately Rs 2,350 crore by purchasing electricity in spot markets at cost-effective prices. The power utilities purchased 3,393 million units (MU) from the open market at lower prices in 2019-20 and 8,890 MU in 2020-21. The average procurement cost, including transmission costs, was Rs 3.12 per unit, compared to the approved weighted average procurement cost of Rs 4.55/unit. In addition to relying on spot market power purchases, state power utilities in India used artificial intelligence and machine learning for the first time to deploy a day-ahead electricity forecasting model. Every 15 minutes, this could forecast the next day's electricity consumption. This would allow for better decisions on electricity demand and supply, grid management, and lowering power purchase costs. The state government persuaded the Ministry of Power to relinquish the 625 MW thermal power, allowing the AP discoms to reduce their financial burden by Rs 1,007 crore. In the past, the central power grid collected central transmission utility point of connection charges from discoms based on anticipated usage on a quarterly basis. As a result, utilities were required to pay higher charges to the central grid. In response to the AP energy department's protest, the CERC changed the methodology, resulting in Rs 350 crore in savings over the last two years. Image Source Also read: Govt urges electricity regulators to issue tariff orders on time Also read: Liquidity infusion for discoms: Overdues fall Rs 15k cr in March

Next Story
Real Estate

DLF Returns to Mumbai with Premium Andheri Residential Project

Delhi-NCR based real estate major DLF announced its return to the Mumbai market on 17 July with the launch of its premium residential project, The WestPark, in Andheri. The first phase includes 416 apartments spread across four towers, with two towers launched on the announcement day. The company plans to invest over Rs 8 billion in the project and expects a topline exceeding Rs 20 billion from Phase 1.“We have launched two towers and, given the strong response, plan to unveil the remaining two towers ahead of schedule, within the next few days,” said Aakash Ohri, Joint Managing Director o..

Next Story
Infrastructure Urban

APCRDA Advances Net Zero Goal with IGBC Training for Officials

In a significant stride towards Andhra Pradesh’s Net Zero target by 2040 and the Swarna Andhra 2047 vision, the Andhra Pradesh Capital Region Development Authority (APCRDA), in partnership with the Indian Green Building Council (IGBC), conducted a high-level capacity-building programme for senior officials in Vijayawada on Friday.Held at a city hotel, the session saw the participation of over 50 senior APCRDA officials, including the Engineer-in-Chief, Chief Engineer (H&B), Director (Planning), Director (Environment), and heads of key departments. The training centred on IGBC’s Green B..

Next Story
Infrastructure Energy

Assam Solar Project Halted as Waaree EPC Contract Is Cancelled

Following the Assam government’s withdrawal from its proposed solar project, the Engineering, Procurement, and Construction (EPC) contract awarded to Waaree Renewable has been suspended. Waaree Group’s EPC division informed the stock exchange of this development through a regulatory filing.The Assam solar project was suspended due to funding challenges, which rendered the initiative unviable for the state government. Waaree Renewable Transmission Limited (RTL) explained that the Government of Assam has withdrawn the project’s funding via the Asian Development Bank (ADB) loan. Consequentl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?