The new scheme, according to them, aims to use the capacity of more than 25-year-old power plants that are still technically fit to operate.
The Centre has asked all states to implement the proposed scheme of pooling tariffs of older thermal and gas-based power plants whose power purchase agreements (PPAs) have ended, people aware of the development said. The states have been asked to comply with the order by July 1.
The new scheme, according to them, aims to use the capacity of more than 25-year-old power plants that are still technically fit to operate.
“The ministry of power has issued a notification in this regard, and we will soon identify the plants that can fit in the new scheme,” a senior energy department official said.
“As the stations of over 25 years have their capex recovered and are fully depreciated, debt free… power at competitive tariffs from these stations can be made available to beneficiaries,” said the notification.
“Accordingly, to utilize these capacities, it has been decided to pool power from all Central Generating Station (CGSs) whose PPAs have expired, and such pooled power shall be made available to willing beneficiaries,” the notification added.
The willing beneficiaries will have to enter PPA for a duration of a minimum of five years. Discoms not finding value in pooling will be able to opt out from the pool after five years.
“The measure will ensure availability of adequate resources in the grid for peaking, balancing, and flexing, and re-distributing benefits such as reliability and cost-effectiveness for beneficiaries,” it pointed out.
Source: PTI
