Friday, May 13, 2022

Energy crisis: Govt amends norms to improve availability of coal for IPPs

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  • The government has also reduced the timeline for signing of Power Purchase Agreements (PPAs) from 67 days to 37 days
  • Private power producers are now also responsible for making available “100 percent power scheduled by the buyer”

New Delhi: In the midst of an energy crisis, the government has announced a slew of amendments on Friday to improve the availability of coal for private power producers. “In line with various measures being taken in view of increasing power demand, Power Ministry has amended the methodology for use of coal (allocated to states) by Private Power generating stations (IPPs). Larger visibility has been given to the power plants by extending the period of supply of coal from 1 year to 3 years,” said the Ministry of Power.

In addition, the government has also reduced the timeline for signing of Power Purchase Agreements (PPAs) from 67 days to 37 days. “The measures have been taken for ensuring more efficient utilisation of domestic coal,” said the government.

Energy crisis: IPPs responsible for 100% delivery of scheduled power

Alongwith ensuring the availability of coal for Independent Power Producers (IPPs), the government has also held private power producers responsible for making available “100 percent power scheduled by the buyer, subject to corresponding reduction in power due to unavailability of the generating unit (s) on account of forced outage.”

The government has also held IPPs responsible for paying compensation in case of a shortfall. “Seller shall pay at 20 percent of Tariff per kWh for the quantum of shortfall below 80 percent on monthly basis,” said the notification floated by the Ministry of Power.

Optimal utilisation of Railways for transportation of coal

“The Government has taken these measures in order to optimally utilise the railway infrastructure for maximum transportation of coal to the power plants. The ministry said that this would enable states to optimally utilise their linkage coal in the plants nearer to the mines as it would be easier to transmit electricity instead of coal transport to far off states,” said the Power Ministry.

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