Andhra government to ensure enough coal stock as power demand set to rise

VIJAYAWADA:  The State energy department has begun preparations for ensuring necessary coal reserves for thermal power generation as the power demand is likely to start surging from March. The AP Power Development Corporation Ltd (APPDCL), a subsidiary of the Generation Corporation of AP Power Generation Corporation Ltd (APGENCO), has initiated the process for procuring 7.5 lakh metric tonnes of imported coal for Sri Damodaram Sanjeevaiah Thermal Power Plant (SDSTPP), Krishnapatnam, required for the next six months.

According to APGENCO officials, the three major thermal power plants — Dr Narla Tatarao Thermal Power Station (Dr NTTPS), Vijayawada, SDSTPP, Krishnapatnam, and Rayalaseema Thermal Power Plant,  Kadapa — require about 70,000 metric tonnes of coal daily for generation at 85 per cent of their plant load factor (capacity). For the last several months, the thermal plants have been kept in reserve shutdown or being run at low capacity as power was available at much lesser price in the spot markets (power exchanges) owing to drop in demand and other factors during COVID-19 pandemic. As the prices in the market are likely to increase in the next two-three months as the demand has begun to rise, the officials are gearing up to stock necessary fuel reserves so that thermal generation can be ramped up, if necessary.

The officials said that the plan was to have enough stock for at least three weeks in each of the plants. While the State faced coal shortage in September, 2019, owing to continuous rains that affected mining activity and strikes by mining employees, the situation was different in June this year with lakhs of metric tonnes of coal lying unused due to reserve shutdown of the thermal units due to the pandemic-imposed lockdown. Some of the employees also wrote to the authorities expressing concern over drop in the quality of coal due to prolonged storage.

To avoid such problems, the officials said that care would be taken to have the stocks required for about three weeks. In line with this, tender for procuring 7.5 MT imported coal for SDSTPP, to be supplied over six months, was floated with an estimated value of `450 crore. The officials expect there will  be significant savings as reverse auction will also be held.