NTPC asks for pooling of its entire capacity for power supply to distribution companies

27 May 2024 , 12:24 PM

According to news reports state-owned NTPC Ltd. has written to the power ministry suggesting pooling of its “entire capacity” for the sale of power to distribution companies. Currently the power purchase agreements signed with power distribution companies specify the specific plant from which power will be supplied to a particular distribution company.

Certain discoms have power purchase agreements (PPAs) negotiated in phases of commissioning; for tariff and scheduling purposes, each phase is a distinct entity.

According to the company, the current setup restricts operational flexibility and frequently affects the supply of electricity for discoms in the event of station malfunctions and forced outages.

According to news reports, the corporation wrote to the government stating that “Discoms/states will get a steady supply of power even in the case of shutdown of units.”

When a discom schedules a power plant below the technical minimum during off-peak hours, it also becomes challenging to run. “A pooling of all stations is requested. One of the reports stated, “The Central Electricity Authority is looking at this proposition.

A power purchase agreement is made between distribution firms and central generation corporations, such as NTPC, once the government assigns power to them. The planning and advisory agency of the power ministry, the Central Electricity Authority, has been asked to evaluate the effects of the change that will affect distribution companies’ electricity tariffs.

According to the reports, if permitted, the stations might have a relatively average capacity charge because states paying higher rates might gain while those paying lower rates might pay a little bit more. In July of last year, the Ministry of Power launched a programme that let thermal power plants whose power purchase agreements had expired to pool their tariffs.

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