POWER THERMAL

India's power demand soars to record high, exceeding previous peaks

India is likely to have reached another record high power demand on May 23, as preliminary reports indicate a peak of 221.2 gigawatts (GW). On May 22, the demand that was met amounted to 220.9 GW. The peak demand deficit, which refers to the shortfall in meeting the demand, stood at 766 megawatts (MW) during these days.

Due to the heatwave conditions experienced in several parts of the country, it is anticipated that the peak power demand met this week may surpass the previous high. On May 17, India reached its highest-ever peak power demand at 221 GW, with a deficit of 1,777 MW.

Lower-than-expected temperatures in early summer and preparedness for projected peak demand of around 231 GW helped in maintaining sufficient capacities for any increase in power demand. .

India's electricity supply improves in cooler pre-monsoon: Kemp

India's electricity transmission network supplied a near-record amount of power in April but the system was much more stable than the year before thanks to lower temperatures and the return of some gas-fired generation.

Total electricity supplied was almost 131 billion kilowatt-hours (kWh), the fourth-highest monthly amount on record. But the total was down by more than 2.3 billion kWh (-1.8%) compared with the same month a year earlier when much of the country was sweltering in an early heatwave.

On the densely populated northern plain, temperatures in New Delhi's Palam suburb averaged 28.2 degrees Celsius (82.8 degrees Fahrenheit) compared with 33.0 Celsius in the same month a year ago, cutting peak electrical loads for refrigeration and air-conditioning.

At the same time, extra generation was provided by solar farms (+1.8 billion kWh, or +23%) and coal-fired generators (+0.3 billion kWh, or +0.2%). These increases helped offset some of the reduced output from hydroelectric generators (-3.0 billion kWh, or -25%) and gas-fired units (-0.3 billion kWh, or -10%).

Power prices feel the heat on high demand; plants have enough coal

Electricity prices on the trading exchanges increased over the last week, indicating higher demand as temperatures spiked in most parts of the country. Power plants reported adequate coal stocks. The month started with 2.8 a unit on the IEX in the day-ahead market, increased to 6 on May 12, and then to 6.7 per unit on May 18, as the mercury rose over the period.

The average price in May so far has been 4.7 a unit compared, lower than the 6.4 per unit in the same period last year. This is despite the 'maximum demand met' touching an all-time high of 221 GW on May 17.

Lower-than-expected temperatures in early summer and preparedness for projected peak demand of around 231 GW helped in maintaining sufficient capacities for any increase in power demand.

Long-terms PPAs, 5-min metering-to-settlement: Govt panel outlines plan to lower electricity bills

A power-ministry constituted panel has recommended new suggestions including the implementation of five minutes-based metering, scheduling, dispatch, and settlement, long-term power-purchase agreements (PPAs) of 12-15 years, among others, to facilitate energy transition in India and reduce electricity bills.

The panel has recommended a roadmap outlining the interventions for the near, medium, and long term in the electricity market. The interventions include setting up a mechanism to monitor whether adequacy of supply is being maintained by the state utilities, enhancing the efficacy of the Day-ahead Market, introducing a market-based mechanism for secondary reserves.

The proposed changes include demand response and aggregation, which could reduce reserve requirements and eventually lower electricity costs. The panel suggests strengthening of market monitoring and surveillance activities to keep track of participation and prevent price volatility.

Government crackdown soon on developers of delayed power projects: R K Singh

Power and New & Renewable Energy Minister

R K Singh has said the government will crackdown on developers of power projects, who miss the scheduled commercial date of opera-

tion or deadline to complete the project.

Singh said that all these projects (power projects) are won under the bidding process and if they miss the SCOD (scheduled commercial date of operation or deadline to complete the project), then the developer will be banned from participating in project bidding for one year.

On the second such incident, the developer will be banned for five years, Singh said, adding that he is going to put this (rule) in (policy). Power project developers are waiting for demand to grow but this will not happen, he said..

Discoms' dues down by a third to 93,000 cr in less than a year of enforcing Late Payment Surcharge Rule

The total outstanding dues of electricity distribution utilities (discoms) has reduced by a third to around 93,000 crore in May, in less than year of implementing the Late Payment Surcharge (LPS) Rules in June 2022.

According to industry data, in June last year, discoms' dues were at 1.39 lakh crore at the time of the launch of the Late Payment Surcharge (LPS) scheme. The total outstanding dues now stand at around 93,000 crore as per the portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).

The PRAAPTI portal was launched in May 2018, to bring transparency in power purchase transactions between generators and discoms. Experts believe the strict implementation of the Late Payment Surcharge (LPS) Rules can make the power sector more viable.

India makes strides in improving power data transparency in Asia: Report

With India making strides in improving data transparency, scoring higher than higher-income countries like China and Japan, more than half of 39 economies in Asia have "poor" or "insufficient" power data, which are home to 684 million people.

While India, New Zealand and Australia scored the highest, many countries with high electricity demand needed improvements. China, despite being the largest electricity consumer in Asia and globally, only scored an "acceptable" rating due to lack of detailed data and inconsistent reporting. ASEAN countries generally scored "insufficient" or "poor" for data transparency, while Thailand and the Philippines performed relatively better.

Notably, three low-middle income countries (India, Bangladesh and Sri Lanka) are making strides in improving data transparency, scoring higher than higher-income countries like China and Japan.

India amends power policy draft to halt new coal-fired capacity

India plans to stop building new coal-fired power plants, apart from those already in the pipeline, by removing a key clause from the final draft of its National Electricity Policy (NEP), in a major boost to fight climate change, sources said.

The new policy, if approved, would not impact the 28.2 GW of coal-based power in various stages of construction, the sources said. The draft, India's first attempt at revising its electricity policy enacted in 2005, also proposes delaying the retirement of old coal-fired plants until energy storage for renewable power becomes financially viable.

In the first draft of the NEP in 2021, India had said it may add new coal-fired capacity, though it proposed tighter technology standards to reduce pollution. The Central Electricity Authority, had said last year India might have to add as much as 28 GW of new coal-fired power in addition to the plants under construction to address surging power demand. However, the final draft, which will guide India's policymaking on energy over the next decade, features no references to new coal-fired power, the sources said.