Setback for thermal units as UP energy watchdog bans new PPAs till Dec 2022


Setback for thermal units as UP energy watchdog bans new PPAs till Dec 2022

In a major setback to coal-fired thermal power plants, energy watchdog Uttar Pradesh Electricity Regulatory Authority (UPERC) has prohibited state power utilities from signing any long-term power purchase agreements (PPA) till December 2022.

In its order, the UPERC has observed UP Power Corporation Limited (UPPCL) and state distribution companies (discoms) had already contracted for “sufficient” thermal power with coal-fired power plants to meet projected demand till 2026-27.

The Commission said it would review the energy capacity, energy demand and availability status in December 2022 to reassess the need for any long term PPAs with coal based thermal power plant keeping in view 54 months’ gestation period required for such projects.

In the meantime, the UP Power Corporation Limited (UPPCL) and discoms have been given liberty to procure short-term seasonal peak power from energy exchanges, Centre or through bilateral banking arrangement with discoms in other states. Read More

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