Union Ministry of Power told the NITI Aayog that AP is the only State which saved a maximum of Rs 1000 crore due to market purchases over costlier units.
The Union Government in the NITI Aayog meeting with all Chief Secretaries announced that Andhra Pradesh was the only State which had saved a maximum of Rs 1,000 crore by purchasing power in spot markets with high level of cost optimization by replacing costlier units.
The NITI Aayog conducted a virtual meeting with chief secretaries of all States and secretaries of various departments to prepare an agenda for the Governing Council Meeting of NITI Aayog chaired by Prime Minister that will be held on February 20.
Addressing the meeting, secretary for Union Ministry of Power Sri Alok Kumar told the NITI Aayog that AP was the only State which had saved maximum of Rs 1000 crore due to market purchases over costlier units. The secretary also said that AP was one of the biggest buyers in the market meeting about 16 per cent of total requirements through market. “The State is using real time market to manage renewable intermittency and it is the largest seller in the Renewable Energy Certificate (REC) market,” the secretary mentioned in his presentation to the NITI Aayog .
One of the top officials of the state govt. who participated in the NITI Aayog meeting, said that Andhra Pradesh had shown the way for reducing power purchase cost for the entire country.
The power utilities procured 6320 MU power from open market during the current financial year. The average cost of procurement, including transmission charges is Rs 3.12 per unit against the approved weighted average procurement cost of Rs 4.55/ unit. “We were able to save Rs 1.43/ unit and the benefit accrued up to December 2020 and the total benefit is Rs 1023.8 crore,” official said.
The power utilities have laid more focus on cost effective power. In order to bring down power purchase costs and make the Discoms financially sustainable, the power utilities have initiated steps to reduce the high power purchase costs.
The government wants to make the State as role model for cheap power which will immensely benefit the power sector, strengthen the 24×7 quality and affordable power supply, benefit people of the State and spur economic development. “The State has now become the best example for other States in relating to cost effective power. In fact, providing interruptions-free power has been dominating the agenda of other States so far. Now they are looking at Andhra Pradesh and started talking about cheap power. This has enhanced the brand image of AP at national level,” the official said.
The Chief Minister has categorically instructed the power utilities to go for cost effective power only to protect the interest of the consumers, said top official of state govt.
The official also said that the Union government has already released an amount of Rs.3,300.00 Crs under Tranche-I of Atmanirbhar loan and also providing Rs 3,300 crore to AP under the second trench of the scheme very soon.
- AP is the largest seller in the Renewable Energy Certificate (REC) market, says, secretary for Union Ministry of Power
- State shows the way for reducing power purchase cost for entire country
- Other States now looking at AP and started talking about cheap power
- Power utilities have laid more focus on cost effective power
- Making the State as role model for cheap power is the objective
- Cost effective power will benefit power sector, strengthen 24×7 quality power supply, benefit people of State, spur economic development