Staff Reporter
Guwahati: The Assam Electricity Regulatory Commission (AERC) has accorded in-principle approval to Assam Power Distribution Company Ltd. (APDCL) for the purchase of 200 MW of power from the 1200 MW Kalai II Hydro Electric Project, which is being implemented in Arunachal Pradesh.
APDCL has been allowed by AERC to purchase 200 MW of power from the 1200 MW Kalai II Hydro Electric Project at a tariff of Rs 5.46 per unit.
AERC considered the contention of APDCL's petition and accorded in-principle approval for the purchase of 200 MW of power from the 1200 MW Kalai II Hydro Electric Project undertaken by THDCIL, a subsidiary of the power generation company NTPC, and the draft power sale agreement in terms of the Regulation of AERC (Terms and Conditions for Determination of Multi Year Tariff) Regulation, 2024.
The Commission also stated that Rs 5.46 per unit shall be the ceiling tariff; no further increase on account of time overrun, cost overrun, or any other reason thereof shall be allowed.
According to the petition by APDCL to AERC, Assam recorded a peak demand of 2576 MW in FY 2023-24. This increased to a maximum peak demand of 2809 MW in FY 2024-25. APDCL stated that since the maximum availability of power from the Long Term Agreements (LTA) is only 1700 MW against total demand of 2576 MW in 2023-24, the rest had to be procured from short-term agreements and the exchange market. As the availability of power in the exchange market is uncertain at times and keeping in mind the demand projection, APDCL needs to go for LTAs more than the above-mentioned ones to secure reliable power for the end consumers.
The Commission, in its decision, also noted that this power procurement will also contribute towards the fulfilment of the Renewable Power Obligation (RPO) of APDCL (all wind, solar, and energy storage obligations), and the proposal has been approved by the Board of Directors of APDCL and approved in the cabinet meeting of Assam.
APDCL, in its turn, informed that according to the latest order by the Ministry of Power, renewable power is to be procured from wind-generating sources, hydro-generating sources, as well as other renewable sources. The said offer will contribute towards the fulfilment of the Renewable Purchase Obligation in the case of Assam, as the 200 MW is hydro power.
On the query by the Commission about the completion date of the project, the MD of APDCL stated that the project shall be completed by 2031.
The project, located in the Lohit River basin in the Anjaw district of Arunachal Pradesh, is comprised of six 190 MW units and one 60 MW. The hydropower plant is expected to generate 4.85 TWh/year.
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