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Team Udayavani, Jan 29, 2025, 10:45 AM IST
Representative image
Bengaluru: Despite reservoirs being full due to good monsoon rains, the Karnataka government has initiated the process of purchasing electricity to address potential power shortages during the upcoming summer months. The state has already started buying 200 megawatts (MW) of power at Rs 6.80 to Rs 7 per unit and plans to acquire an additional 600 MW next month.
Proactive Measures to Meet Demand:
The Energy Department is also in talks with Uttar Pradesh and Punjab for power exchange agreements, aiming to secure 1,000-1,100 MW. Officials revealed that the state is preparing to arrange approximately 2,000 MW through various means to meet the anticipated summer demand.
Currently, the government is procuring 200 MW through the Term Ahead Market (TAM), which allows power purchase agreements for one to 11 months in advance. This model ensures better rates and reliability compared to the Day-Ahead Market (DAM), where power is booked one day in advance with a 50% chance of securing supply, and the Real-Time Market (RTM), where power is booked just 1.5 hours in advance but comes with no guarantee of availability.
Rising Demand-Supply Gap:
Although reservoirs are full, the gap between power demand and supply is widening. In early January, the shortfall was 6-8 million units per day, but it has now increased to 10-12 million units. Thermal power plants in the state are not operating at full capacity, leading to frequent power cuts, with reports of load shedding occurring twice daily in some areas.
Officials warned that entering the market during peak summer could push power prices above Rs 10 per unit. To avoid this, the government is booking power in advance through TAM, which offers more options and stability compared to RTM and DAM.
Power Sources and Supply Details (as of January 27):
Breakdown of Supply (in million units):
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