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Economic Infrastructure development in Bangaru Telangana
Highlights
Infrastructure development is critical for economic growth in setting up an enabling platform for sustainable economic development. Economic Infrastructure, particularly, lays emphasis on energy, irrigation, roads, transport, airports etc.
Infrastructure development is critical for economic growth in setting up an enabling platform for sustainable economic development. Economic Infrastructure, particularly, lays emphasis on energy, irrigation, roads, transport, airports etc.
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A fast growing economy warrants an even faster development of infrastructure. Besides government efforts, defining the role of private sector plays a vital role in the provision of infra- structure through Public Private Partnerships and exclusive private sectors in certain areas such as Transport, Communications, Entertainments etc., accelerates the pace of infrastructure growth.
Energy
Quality power supply to various competing sectors is a sine-qua-non to meet the ambitious development objectives of newly formed State of Telangana. Driven by considerable growth in demand from agriculture, domestic and industrial sector and metro city of Hyderabad, the per-capita consumption has in the state stands at 985 units, as against the national average of 917 units. Energy deficit in Telangana for last three years was in the range of 5%-12%.
Energy requirement in Telangana was 47,428 MU in the year 2014-15, of which only 44,946 MU could be met resulting in an energy deficit of nearly 5%. Going forward, energy requirement is expected to increase around 11% for the period 2014-15 to 2018-19.
After the State formation, Telangana State Generation Corporation and Transmission Corporation had been set up. In order to promote solar and other renewable energy sources, a Telangana State Solar and Renewable Development Agency had also been established. Out of two Distribution Companies, one had been re- structured in view of transfer of Ananthapur and Kurnool districts to the residual state of Andhra Pradesh.
Key steps to be taken to meet the energy requirement of Telangana in next five years are given below:
Supply side management
Achieve Capacity Addition
• Commission new power plants under state ownership.
• Firm up power supply from upcoming Central Generating Stations (CGS)
• Firm up power supply from upcoming power plants like Krishnapatnam, RTPP-IV, Thermal Power Tech
• Undertake power procurement through competitive bidding to tap power from SR and outside SR generators.
• Increase installed capacity of Non-Conventional Energy (NCE) sources
• Ensure more sustainable fuel mix
• Ensure longevity of PPAs due to expire in next five years.
Efficiency improvements across the value chain
• Enhance coal supply from SCCL
• Improve efficiency of existing TSGENCO plants
• Improve efficiency of Transmission sector
• Improve efficiency of Distribution sector
• Improve financial health of DISCOMS
Demand side management
Implement efficiency measures in energy consumption of domestic households, street lights, agriculture pump sets and industries.
The current fuel mix is largely coal based and it is not likely to be changed in the near future. With the em- phasis on the cleaner sources of energy production, it is expected that the renewable energy from current 1 percent in the energy mix will become about 9 percent by 2018-19.
Over the next 5 years, thermal capacity augmentation to the tune of 1400 MW is planned at Bhoopalpally and Kothagudem by TSGENCO. It will be supplemented by a capacity addition of 1,050 MW at Jaipur (Adilabad) by SCCL.
Hydel capacity of 360 MW at Jurala and Pulichintala is expected to be added by 2015-16. In terms of CGS power, major additions are expected by 2018-19 from Kudigi, Tuticorin, Neyveli, Kalpakkam and Srikali plants.
Plants like Krishnapatnam, RTPP-III, Thermal Power Tech (Case-I LT) located in Andhra Pradesh with which TSDISCOMS already have a PPA and are expected to add a capacity of 1454 MW cumulatively by 2016-17.
With above capacity additions, TSDISCOMS would still fall short of projected energy requirement, hence a robust Short Term, Medium Term and Long Terms power procurement roadmap has been put into place, under which TSDISCOMS are expected to tie up 2000 MW in Medium Term/Long Term.
In addition to supply augmentation from regular sources, TSDISCOMS have prepared a detailed roadmap of significant addition in solar and wind capacities.
Going forward, the dominance of coal based generation is expected to continue as the share of hydel is ex- pected to come down due to lower hydel based capacity additions. However due to the strong policy push by the Government of Telangana, non-conventional energy, predominantly solar and wind is expected to contribute around 7,529 MU in 2018-19 which would be around 8% of the energy availability of the State.
This change in fuel mix will be impacted by expiry of some existing PPAs, during next 5 years.
The net impact due to rescinding of current TS/AP GENCO PPAs in 2018-19 to the State of Telangana would be a loss of 347 MW of thermal generation which translates to 2,217 MU. This is around 2.6% of energy requirement in 2018-19.
While the Central Government is likely to come out with a new gas pricing mechanism for gas from KG-D6 basin to propel production of gas and consequent power generation, PPAs of TSDISCOMS with gas based IPPs for 542 MW would expire over the next 2-3 years. In the years 2012-13 and 2013-14, the availability from gas based IPPs were 4,196 MU and 2,186 MU respectively. This translates to a PLF of 39% and 20% respectively against a normative PLF requirement of 85%. PPA with KSK Mahanadi which is due to expire in June 2016 may be renewed on favourable terms. This would ensure continued annual availability of 1,570 MU.
In addition to the above, energy sector in the State highlights following imperatives:
1. As per AP Reorganization Act 2014, engagement with Ministry of Power should be enhanced to en- sure that NTPC sets up 4000 MW of dedicated power plant at Ramagundam with best efforts.
2. Post availability of gas from D6 basin may me considered for reviving the Shankarpally gas plant pro- posal to augment dedicated power supply to the IT region of Hyderabad.
3. The process of calling pan India tenders for procurement of Long Term power should be initiated in quick earnest to ensure that the available corridor is booked from FY 17-18 onwards for drawing cheaper power from NEW Grid. Suitable modifications needed in the SBDs should be applied for with the Regulator.
4. An ambitious capacity addition of 7280 MW is planned by TSGENCO in long term, the same should be put on fast tract with enhanced inter departmental co-ordination.
5. Transmission corridor augmentation to ensure evacuation from upcoming generation centers should be monitored proactively to ensure that transmission corridor leads generation availability
6. Government should further create an enabling environment for renewable generation to significantly impact the fuel mix going forward
7. SCCL is expected to produce 113 MT in the last two years of the 12th plan period and 303 MT in the 13th plan period. SCCL and TSGENCO should proactively try to access international assets through transparent route to cater to the needs of coal fired power plants.
8. By rationalization of linkages initiated by Gol, TSGENCO should be able to get pit head advantages.
9. Mine Developer & Operator (MDO) route may also be explored to enhance the mining potential by leveraging SCCL expertise.
10. Once Govt. of India’s policy of enhancing gas output achieves its goal, suitable gas plants in addition to extant PPAs are expected to plug energy deficit through open cycle generation with appropriate regulated tariffs.
11. The key challenges which DISCOMS face in meeting the targets are reducing technical and commer- cial loss in distribution of power, minimizing interruptions and breakdowns in the network infrastruc- ture, surpassing customer expectations on new connection release and complaint resolution.
12. For meeting this objection, DISCOMS need to make investments in SCADA, GIS, HVDS smart metering, network strengthening, integrated IT systems, customer service centers, prepaid power cards and AMRs.
13. Moving forward, significant capacity additions are expected from renewable energy sources, TelanganaDISCOMS will have to address the challenge of greater penetration of renewable into the grid.
14. Rules and regulations should be suitably framed to ensure implementation of recommendations of BEE and BIS. This would ensure optimal demand side management across various sectors.
As per the demand forecast, 84,496 MU energy is to be made available to the people of Telangana by 2018-19 on 24x7 basis by augmentation of generation, increase in fuel availability, reducing the transmission losses to optimal level; and continuing on the path of reduction of distribution losses.
G.Rajendra Kumar
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