Economic Times reported that the power sector is unable to use at least 10% of its capacity due to the choked transmission network in the country, hurting projects of TATA Power, Essar Power, Jindal Power, JSW Energy, CLP, DB Power, MB Power, Emco Energy, GMR and Adhunik Power.
As per report, inadequate transmission has kept about 25,000 MW of generation capacity idle, making the problem comparable to the issue of acute fuel scarcity that has hit about 30,000 MW of new capacity. In addition to the inadequate capacity, regulatory authorities impose strict restrictions on the utilisation of existing networks and keep a large amount of transmission capacity idle as a safeguard against grid collapse.
Mr Rajesh Mediratta, director of business development at Indian Energy Exchange, said that “They said that new transmission capacity in key corridors is scheduled to come up after 4 years, making the outlook grim for many plants. Transmission problems are also hurting power trading. The impact of transmission congestion on the power exchanges has been increasing with each passing year impacting both the volumes as well as the prices. The volume lost is slated to increase further unless adequate measures are adopted to augment transmission capacity in the regions having congested transmission corridors. Constraints in the regional transmission system in south further added to the problem and increased the power deficit there. Last month, no power could be imported into the southern region throughout the month either through the eastern or western corridor due to congestion.”
Mr Ashok Khurana, director general of the Association of Power Producers, said that restrictions on capacity utilisation of transmission corridors often prevent generation companies from supplying power even after signing long term power supply agreements. Mr Khurana said that “There were many cases where power producers are unable to sell electricity in short term markets due to congestions and restrictions. Transmission bottlenecks prevent the supply of power to deficit regions in summer and monsoon seasons, when demand peaks. Projects of TATA Power, Essar Power, Jindal Power, JSW Energy, CLP, DB Power, MB Power, Emco Energy, GMR and Adhunik Power are facing transmission constraints.”
At least half a dozen transmission projects of various companies including Power Grid Corporation, Reliance Infra and Sterlite Grid with investments of over INR 7,000 crore are held up or delayed due to the slow speed of official clearances.
Mr Rajesh Mediratta, director of business development at Indian Energy Exchange, said that “They said that new transmission capacity in key corridors is scheduled to come up after 4 years, making the outlook grim for many plants. Transmission problems are also hurting power trading. The impact of transmission congestion on the power exchanges has been increasing with each passing year impacting both the volumes as well as the prices. The volume lost is slated to increase further unless adequate measures are adopted to augment transmission capacity in the regions having congested transmission corridors. Constraints in the regional transmission system in south further added to the problem and increased the power deficit there. Last month, no power could be imported into the southern region throughout the month either through the eastern or western corridor due to congestion.”
Mr Ashok Khurana, director general of the Association of Power Producers, said that restrictions on capacity utilisation of transmission corridors often prevent generation companies from supplying power even after signing long term power supply agreements. Mr Khurana said that “There were many cases where power producers are unable to sell electricity in short term markets due to congestions and restrictions. Transmission bottlenecks prevent the supply of power to deficit regions in summer and monsoon seasons, when demand peaks. Projects of TATA Power, Essar Power, Jindal Power, JSW Energy, CLP, DB Power, MB Power, Emco Energy, GMR and Adhunik Power are facing transmission constraints.”
At least half a dozen transmission projects of various companies including Power Grid Corporation, Reliance Infra and Sterlite Grid with investments of over INR 7,000 crore are held up or delayed due to the slow speed of official clearances.
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