No buyers for energy generated from Baglihar-II hydel project

Existing power rates low; JKSPDC in loss, supplies 450 MW to state

The big ‘slump’ in the market has made it difficult for the Jammu and Kashmir State Power Development Corporation (JKSPDC) to find a buyer for the energy generated from the Baglihar-II hydropower project since it was inaugurated by Prime Minister Narendra Modi on November 7, 2015.
Consequently, the JKSPDC decided to supply the full 450-MW energy generated from the Baglihar-II project to the state’s Power Development Department (PDD) at minimal rates to meet the electricity needs of the people of the state.
Despite the corporation’s losses mounting, the existing arrangement has failed to make any significant impact on the ground as the consumers, particularly in the Jammu region, continue to face unbridled power cuts amid hot and humid conditions.
“There is a big slump in the market and there is no reason to sell the electricity on cheaper rates. The existing market rates of electricity per unit are anything between Rs 2.30 and Rs 2.50 which is quite below our commercial viability. Why should we supply the electricity to others at this rate? We will not sell it to others till the improvement in rates. Therefore, we are selling our electricity to the PDD,” said Ajay Gupta, Executive Director (Electric), JKSPDC.
According to the Chief Engineer, Baglihar hydropower project, Ramesh Kumar Sharma, the corporation has been generating electricity to the full capacity of the project which is 450 MW due to ‘good discharge’ of water in the Chenab.
He, however, feigned ignorance whether any agreement had been signed by the corporation with a buyer. “Only the corporate office can provide such details,” the Chief Engineer said.
Official sources said it was due to the failure of the state government to ink a power purchase agreement with any power trading company or other state discoms before the commercial operations of the hydel project, inter alia other issues, which had made situation difficult for the corporation.
The JKSPDC runs 21 power projects, including 900-MW BHEP (BHEP-I and BHEP-II with 450-MW capacity each) in the state. The state requires 2,700 to 3,000 MW to meet the energy requirements during the peaks hours. The total generation capacity of all hydel projects owned by the corporation is about 1,221 MW, including 900-MW Baglihar-I and II.
The Baglihar-II project, which started commercial operation in April 2016, has the annual generation capacity of 1,302 million units and it can generate electricity effectively between May and September every year when the water level remains high in the Chenab.
A senior official of the PDD claimed that the state government had not done “proper groundwork” before starting commercial operation of the hydel project. “The electricity is available in the market at cheaper rates but the high cost of energy generation from the Baglihar-II project, completed at a whopping cost of Rs 3,113.19 crore, is another reason for the corporation to find a suitable buyer for it,” the official said.
The official, however, expressed surprise over the prevailing electricity scenario in the entire Jammu region amid hot and humid conditions. “It is astonishing that despite availability of additional 450-MW power from the Baglihar-II project to the PDD, there has been no significant improvement in the power scenario in the region, where unbridled power cuts are a routine,” he said.