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Doubts over generation capacity addition in FY15

April 17: At a time when demand for electricity is not growing in a way it was projected to, questions are being raised in certain quarters as to whether the recent announcement by the Ministry of Power with regard to addition of power generation capacities in 2014-15 are accurate or not.

The power ministry had, on April 15, announced that India added a total of 22,566 MW of generation capacities in 2014-15 as compared to 17,425 MW added in 2013-14.

Of the total capacity added in 2014-15, as much as 7,630.59 MW appears to have come in March alone, ie, in the last month of the financial year.

According to data provided by the Central Electricity Authority in March, the total power generation capacity addition during the first 11 months of 2014-15 (April-February) stood at 14,935.41 MW.

“I think some of the units were forcibly added  to increase the numbers in terms of power generation capacity in 2014-15 as these may not be in a position to start commercial generation anytime during the next 6-9 months,” an official in the Ministry of Power told ICMW.

“I know of at least 2-3 plants, which will not be able to start commercial generation even in the next 9 months and there are another 3-4 plants that will not be able to start commercial generation even in the next six months,” the official added.

“What is the point in announcing capacity addition, especially at a time when there is not that much electricity demand in the system,” an industry source asked.

“All of us know what the problems are in the country. There are places where there is no electricity and there are places where power is in short supply and also there are places which witness huge power outages (load shedding),” the source added.

He suggested that the government should focus on improving the transmission network to ensure smooth supply of electricity in many parts of the country and at the same time a system has to be worked out to improve the financial conditions of distribution companies so that they can purchase power from the generators.