As many as nine stranded gas based power generation plants with an installed capacity of 5,070 MW have got a new lease of life after they emerged as successful bidders in the fourth phase of reverse e-bidding process.
Together these nine plants would be allocated 9.93 million standard cubic meters per day (mmscmd) of re-gassified liquidified natural gas (or R-LNG) through a process involving government support of Rs 187.14 crore from the Power System Development Fund.
“Government of India is committed to the revival of such stranded power plants as a measure to ensure 24X7 power to all,” said an official release of the ministry of power under minister Piyush Goyal.
Lack of sufficient gas supplies had stranded gas based power generation in the country. Taking advantage of the low gas prices, R-LNG has been imported and offered to these power plants through a transparent and competitive reverse e-auction process.
As a result of supply of R-LNG to these nine power plants, 8.81 billion units of electricity will be generated and supplied at or below Rs 4.70 per unit to the purchaser Discoms during the period from 1st October 2016 to 31st March 2017.
“The auction process successfully concluded on September 3, 2016 wherein 9 plants emerged as preferred bidders and were allocated 9.93 MMSCMD e-bid RLNG,” the statement said.
The present reverse e-auction for the Stranded Gas based Plants is the fourth phase of auctions conducted under Scheme for Utilization of Stranded Gas Based Generation Capacity.
The grid connected gas based power generation capacity in the country is 24,150 MW. Of this, a capacity of 14,305 MW had no supply of domestic gas. These comprise 29 plants which were eligible to participate in the auction process held today. 14 plants with a cumulative installed capacity of 7,575 MW participated in the auction process for Phase IV.
The successful bidders include power plants in Southern region. The generation from these plants would improve the power availability in the Southern grid, mitigating to a large extent the shortage of availability and constraint of evacuating the power to the Southern region from other regions.