SRINAGAR: Authorities said on Wednesday that the recent 500 MW thermal power purchase agreement is likely to result in a one-rupee per unit increase in tariff compared to the existing hydropower tariff.
Principal Secretary of the Power Development Department (PDD), H Rajesh Prasad, said that the process to harness the newly acquired 500 MW would commence soon.
While acknowledging the region’s reliance on hydropower, Prasad mentioned a pre-existing solar power purchase agreement of 1600 MW, surpassing the capacity of hydropower. He added that by December 2024, Jammu and Kashmir (JK) would incorporate solar power into its energy mix.
Highlighting the limitations of solar energy due to variability during different weather conditions, Prasad emphasised the advantages of thermal electricity generation using coal or gas, providing a consistent 24-hour power supply.
Regarding the 500 MW power purchase agreement, Prasad confirmed government approval and discussed the anticipated tariff adjustment. He stated that the base rate for thermal power would likely be slightly higher than that of hydro and solar power, potentially increasing from the current rate of Rs 4.50 paisa per unit to Rs 5.25 paisa or Rs 5.50 paisa. Despite the expected increase, Prasad deemed it a reasonable rate necessary to support the base load.
Speaking on the procurement of power, Prasad mentioned ongoing purchases from the power exchange, comparing its volatility to the share market. He assured that the Power Development Department holds sufficient power purchase agreements to meet the base load requirements.
While acknowledging permission for the 500 MW thermal power purchase, Prasad mentioned the need for central electricity authority procedures to finalize price approval, expecting completion within 2-3 days. (KNO)
