Andhra CM calls for the Prime Minister’s intervention to face the energy crisis
The Chief Minister of Andhra Pradesh, YS Jagan Mohan Reddy, on Friday requested the intervention of Prime Minister Narendra Modi to deal with the acute energy crisis facing the state, due to the shortage of stocks of coal.
To avoid chaotic conditions likely to arise from the load shedding, the chief minister urged the prime minister to order the ministries of coal and railways to allocate 20 coal rakes to thermal states and banks to be tasked with supplying generously working capital loans to discoms (distribution companies) until the end of the crisis.
âIn Andhra Pradesh, the demand for electricity post-COVID-19 has increased by 15% in the last six months and by 20% in the last month, coupled with the coal shortage, plunging the energy sector of the country in turmoil, âJagan said. in a letter to the Prime Minister.
It has become increasingly difficult to meet grid demand and circumstances are pushing the state towards load shedding, he said and urged: “We need your urgent interventions in this hour of crisis” .
Unplanned power cuts, once used, will lead to chaotic conditions in society, as the state witnessed in 2012, he added.
Seeking urgent measures to avoid load shedding, the CM demanded the revival of failed / non-functioning coal-fired power plants in India without PPAs or coal-fired in an emergency.
This will save the coal transport time and quantity limitations in transporting coal in coal-fired power plants without a mine head, he said.
Jagan also requested the deep water well gas supply available from ONGC and Reliance in an emergency for 2,300MW gas plants stranded / non-functioning in the state.
He further said that the nearly 500 megawatt (MW) shortfall in power plants due to plant maintenance can be made up by reviving plants early or postponing maintenance.
Highlighting the energy crisis facing the state, the chief minister said Andhra Pradesh responds to grid demand of around 185 to 190 mega units (MU) on a daily basis. The power plants operated by APGENCO, which supply about 45 percent of the state’s energy needs, barely have coal stocks for 1 or 2 days and their production could be further affected.
APGENCO’s coal-fired power stations are operating at less than 50 percent of their 90 CU capacity per day due to the coal shortage. Power plants (CGS) were also unable to deliver more than 75% of their 40 MU per day capacity, he said.
In addition, the CM said it absorbs the energy of 8,000 megawatts (MW) of renewable energy capacity, the state has not executed contracts with coal-fired power plants and therefore it is highly dependent on purchases. of the market to supply the missing energy.
The average daily market price of about CU40 per day of energy the state purchases has tripled from a daily average of ??4.6 per kWh (kilowatt hour) on September 15 at a daily average of ??15 per kWh on October 8 of this year, he added.
Jagan also mentioned that the tariffs in up-to-date and real-time electricity markets are skyrocketing day by day and have peaked at ??20 per unit at most times of the day regardless of peak or off-peak hours.
“Electricity is also not available at certain times in the market due to less generation availability in the country,” he said, adding that this is a “situation. alarming “and that the finances of distribution companies would deteriorate further if the situation persisted.
The power shortage is affecting the last stage of the harvest for farmers, he added.
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