Now Reading: Andhra Pradesh to buy 1,600 MW coal power via bidding
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Andhra Pradesh to buy 1,600 MW coal power via bidding
Andhra Pradesh's power regulator has given in-principle approval for state discoms to procure 1,600 MW of coal-based thermal power through tariff-based competitive bidding. The procurement, under Section 63 of the Electricity Act,…
The Story in Brief
Andhra Pradesh's power regulator has given in-principle approval for state discoms to procure 1,600 MW of coal-based thermal power through tariff-based competitive bidding. The procurement, under Section 63 of the Electricity Act, follows a review meeting chaired by Chief Minister N. Chandrababu Naidu. It is the first phase of a larger plan to add nearly 5,588 MW of coal capacity by 2035-36, as recommended by the Central Electricity Authority.
The CEA's Resource Adequacy Plan projects the state's electricity demand will grow at 6.90% CAGR and peak demand at 7.10% over the next decade, reaching 30,927 MW and 1,68,221 million units by 2035-36. Without new capacity, the CEA warns of an energy deficit ranging from 471 MU to 32,694 MU during the period. The new thermal power is intended to support the grid during peak demand and when renewable generation falls short.
The Indian Opinion
The AP government's claim that thermal power is needed as 'firm and dispatchable' backup for renewables is technically correct but incomplete. Absent from the official narrative: costs of coal imports, carbon liabilities, and whether cheaper storage options were fully explored. The CEA's own plan calls for 12,600 MW of new solar and 4,200 MW of wind alongside this coal. The test will be the tariff discovered in the competitive bidding, if it exceeds Rs 4 per unit, the economic case for storage alternatives deserves a harder look.
Sources (2): thehindu.com, thehindu.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
