Four states show interest in buying power sans PPAs


Four states show interest in buying power sans PPAs

Four states — Telangana, Bihar, Tamil Nadu and Haryana — have evinced interest to buy power under a government scheme to promote purchases from plants without power purchase agreements (PPAs), sources said. The scheme was launched earlier this year to provide assured electricity offtake for 2,500 MW of stressed independent power plants (IPPs).

While Telangana and Bihar has agreed to buy 500 MW and 200 MW, respectively, through this scheme, discussions are underway with Tamil Nadu and Haryana for 500 MW and 400 MW each, a person with knowledge of the developments said.

Tepid response from buyers for power under the scheme follows similar reaction from electricity generators, with only seven power plants with combined capacity of 1,900 MW agreeing to sell electricity in this mode.

States and IPPs are shying away from the scheme even as nearly 20,000 MW of commissioned units are currently under stress due to lack of PPAs, while states are increasingly sourcing power from the short-term markets. Read More

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