Visakhapatnam, India (CU)_ While the country has been plagued by a power crisis and over a dozen larger states have resorted to load shedding, Andhra Pradesh power providers are optimistic that the situation would normalize by early May. Thermal power plants contribute to over half of the country’s overall electricity generation capacity. Coal reserves at thermal power plants in various states are barely sufficient for one to two weeks. In the meantime, demand for power has been growing as the economy has reopened and the country approaches peak summer.
While making every attempt to alleviate the present power shortfall caused by an insufficient coal supply, the State energy department, on the advice of Energy Minister Peddireddy Ramachandra Reddy, has appointed a core management team solely to address the present power shortage. The Core Management Team will keep a careful eye on coal stockpiles at thermal power plants and will cooperate with the plants and the State government.
On average, some states have fewer than two to five days of rolling coal supplies remaining, compared to the necessary 24 days. Numerous coal-fired power plants around the nation have reduced their output owing to a coal scarcity and increasing global coal prices, which have reached a record high. Price of coal is projected to rise higher since numerous states rely on imports.
The State’s energy consumption stood at 63,605 MU in 2018-2019 and has climbed 8.3 percent to 68,905 MU, but coal supply has not increased at the same pace. Numerous states are also encountering the same issue. Thus, power costs are at an all-time high in markets. This year, the Power Exchange’s price ranged between INR 12 and INR 20 a unit, the highest in the last decade. During peak hours, AP Power Utilities are compelled to acquire power for as high as INR 12 to INR 20. This has imposed a significant financial burden on AP’s electric utilities.
Peddireddi stated during a virtual assessment of the power supply situation on Sunday that the government is dedicated to delivering stable electricity to consumers and free power to agriculture throughout the day. He said, “I am confident that the government will overcome the shortage, a temporary phenomenon, and utilities will provide sufficient power to all sectors in the State”.
The minister also urged the power utilities to strengthen their initiatives to overcome the current crisis and to restore normalcy to power supplies, including in industry. He asked electricity utilities to exercise extreme caution in the following four days, as temperatures are expected to reach 44 to 46 degrees Celsius. The minister said he will also conduct a review of ongoing projects.
