Govt launches pilot scheme to buy 2.5 GW from power plants not having PPAs

• State-run Power Fiance Corporation (PFC) said the government has launched a pilot scheme to procure 2,500 MW electricity for 3 years under medium term arrangement from commissioned power plants without power purchase agreements.

• The main purpose of the scheme is to revive commissioned power plants which are unable to sell electricity in the absence of valid power purchase agreements. These plants can bid for power supply under the scheme.

==> Scheme details

• The PFC arm PFC Consulting Ltd has been appointed as the Nodal Agency and PTC India Limited as the Aggregator.

• The PTC India will sign three-year (mid-term) agreement for power procurement with successful bidders and Power Supply agreement with the Discoms (distribution companies).

• Under the scheme a single entity can be allotted maximum capacity of 600 MW. The scheme assures a minimum offtake of 55 per cent of contracted capacity. The tariff will be fixed for three years without any escalation.

==> Significance

• The move will help nearly 12 GW commissioned thermal power plants get the medium-term power purchase agreement (PPA) which is a pre-requisite for getting coal linkage.

• Presently out of the 40 GW stressed coal based power generation capacity, 28 plants of 24 GW worth Rs 1.44 lakh crore are commissioned. Nearly half of these capacities (12GW) do not have coal linkage because of no PPAs. KKS KKS BAL BAL

Link: https://wt6q7.app.goo.gl/F1kzXLikVWKxqpYR6

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