Assam: AERC approves purchase of 500 MW power by APDCL

Staff Reporter

GUWAHATI: The Assam Electricity Regulatory Commission (AERC) has accorded in-principle approval to the APDCL (Assam Power Distribution Company Ltd.) for the purchase of 500 MW power from four different power-generating companies.

The power-generating companies are DB Power Ltd, Jindal India Thermal Power Ltd, MB Power Madhya Pradesh Ltd, and Adani Power Ltd.

Earlier, APDCL submitted a petition to the AERC seeking approval for the procurement of 500 MW of power on a long-term basis from coal-based power-generating companies in a staggered manner - 200 MW from FY 2025-26 and an additional 300 MW from FY 2028-29, each for 25 years.

The APDCL submitted that Assam is witnessing significant growth in its economy and infrastructure. Assam's rapid industrialisation, urbanisation, and population growth have led to a marked increase in the demand for electricity. The government's focus on rural electrification has brought electricity to remote areas, adding to the overall demand.

The APDCL further said the state receives power from 36 different sources, including its own generating stations, central generating stations (CGSs), and independent power producers (IPPs). The major hydroelectric power plants in Assam, such as the Karbi Langpi and Kopili Hydroelectric Projects, contribute significantly to the state's power supply. However, hydroelectric generation is subject to seasonal variations, leading to an inconsistent supply.

 Despite the increased focus on power generation, Assam faces a significant gap between the supply and demand for electricity. As per the report on the resource adequacy plan for Assam (2024-25 to 2034-35) published by the Union Ministry of Power (Central Electricity Authority), Assam needs to contract coal capacities (planned and additional) per year till FY 2034-35 to meet its demand reliably, along with fulfilment of its RPO (Renewable Purchase Obligation) as notified by the ministry, the APDCL said.

The AERC examined in detail the petition filed by APDCL. Considering the contention of the petition, the AERC accorded in-principle approval for the purchase of 500 MW of power from all four companies at the rate of Rs. 5.79 per unit for a period of 25 years in a staggered manner - 200 MW from FY 2025-26 and an additional 300 MW from FY 2028-29, each for 25 years at the price discovered through competitive bidding in the DEEP (Discovery of Efficient Electricity Price) portal of the Ministry of Power and the adoption of the tariff under Section 63 of the Electricity Act, 2003.

 Also Read: Assam: AERC Approves APDCL’s Annual Budget for 2025-26

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