State plans to outsource underutilised Bawana plant
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25/05/2015
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Hindu (New Delhi)
Exploring possibility of roping in an expert global power company
Grossly underutilised since the last four years, the Aam Aadmi Party government is planning to outsource the Capital’s biggest power plant to a company of international repute. The 1,500 MW gas-based power plant in Bawana currently produces merely 270 MW to 290 MW power since it was commissioned in 2011. In the absence of adequate gas supplied by the Centre to run the plant to its full capacity, Delhi Power Minister Satyendra Jain has decided to explore the possibility of roping in an expert global power company that will generate power in the plant and sell the same to the government.
Speaking to The Hindu , Mr Jain said: “We want an international player to run the state-of-the-art power plant at Bawana. The company will have to make its own arrangement for gas as we do not have the required expertise to extract it or even to buy it. It will mostly have to import the gas since India is not a gas-rich country.”
The Bawana plant at present produces only 20 per cent of its total capacity. It was supposed to be commissioned before the 2010 Commonwealth Games, but got delayed as the plant was not ready. If the plan works out, Mr. Jain said the Delhi government will divert the gas coming to Bawana towards the IPGCL Gas Turbine Power Station, the oldest gas-based power plant in Delhi.
The Minister had asked the power department to carry out a feasibility study on the same. “The report suggests that the plan may work. Any interested company will have to bring the gas to Kandla port in Gujarat through tankers. From Kandla port, liquefied gas will be sent to the Bawana plant through pipelines that already exist. The company will generate power in the plant and we will then buy it from them,” explained Mr. Jain, adding that it will also provide with skilled staff for the same if necessary.
The Delhi government feels the move will ensure two things.
First, the plant could be made operational to its full capacity, and secondly, efficiency in operations and generation will improve significantly.
However, power experts believe that if gas has to be imported, which is the only way to fully run the plant, the price of power generated from it will be exponentially high.
“Spot gas or imported gas is very expensive. The government will have to analyse all aspects carefully. But no doubt, the efficiency of the plant will increase,” said an expert.
However, Mr. Jain said, “Every plant has fixed cost along with variable cost. Because of the fixed cost, which is based on the whole 1,500 MW plant, the cost to produce around 100 MW to 200 MW is much more. Once the plant begins to generate to its full capacity, costs will automatically come down.”
‘The international company will generate power in the plant and we will then buy it from them,’ said Delhi Power Minister Satyendra Jain