Lok Sabha Question No. 3894 (UNSTARRED), answered on 2023-03-23
Subject: Demand and Production of Electricity
Ministry: POWER
Asked by: Rajmohan Unnithan

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA

## UNSTARRED QUESTION NO. 3894 ANSWERED ON 23.03.2023

## DEMAND AND PRODUCTION OF ELECTRICITY

## 3894. SHRI RAJMOHAN UNNITHAN:

Will the Minister of POWER

be pleased to state:

- (a) whether  there is a major gap  between  the  electricity  demand  and production which has widened in Kerala and if so, the details thereof;
- (b) whether the electricity charge at Rs. 50 per unit is a big threat to States like  Kerala  and  which  depend  on  electricity  from  power  plants  in  other  States during the peak periods and if so, the details thereof;
- (c) whether the privatization of the electricity sector leads to energy crisis and the  high  cost  of  electricity  would  be  an  additional  burden  to  common  man  in States like Kerala and if so, the details thereof; and

(d) whether  the  Government  would  revise  and  withdraw  the  decision  of privatisation  of  power  sector  and  further  hike  unit  cost  of  electricity  which  is upto Rs. 50 per unit and if not, the reasons therefor?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) :   The power supply position of Kerala in terms of energy and peak during the last  year  i.e.  2021-22  and  the  current  year  i.e.  2022-23  (period  April,  2022  to February, 2023) is given at Annexure. The energy supplied has been commensurate  to  the  energy  requirement.  Even  this  gap  between  energy requirement  and  energy  supplied  is  generally  on  account  of  factors  other  than inadequacy  of  power  availability  in  the  country  e.g.  constraints  in  distribution network, financial constraints, commercial reasons, outages of generating units, etc.

- (b) :   The  States  meet  their  electricity  demand  from  their  own  generating stations, share from central generating stations, purchase from private generating  stations  and  power  exchanges.  Generally,  power  traded  in  power exchange is  about  4-5%  of  the  power  generated  in  the  country.  Last  year,  the Ministry of Power after taking note of the fact that on some days the prices in the electricity  exchange  had  gone  upto  Rs.20  per  unit,  had  given  directions  to  the CERC to put a price cap on the exchange so that there is no profiteering. The cap of Rs.12 per unit was imposed by CERC from 01.04.2022 in Day Ahead Market & Real Time Market, and further in all segments from 06.05.2022.

Further,  a  new  segment  of  power  market  called  High  Price  Day  Ahead Market (HP-DAM) has been launched in March 2023, where costly power from gas based plants, imported coal-based plants and renewable energy stored in batteryenergy storage system could be sold. In the HP-DAM market, a technical cap of Rs.50 per unit has been fixed by CERC. This is also being reviewed. It may be noted that average market clearing price in DAM during 2022 was Rs.5.77 per unit while the cap was Rs 10/- per unit. Transaction is yet to take place in HP-DAM.

- (c) :   Price  of  electricity  in  the  markets  generally  gets  discovered  based  on competition.  Demand  supply  balance  is  major  factor  directly  affecting  the discovered price in the market.
- (d) : Rs.50/unit  is  only  a  technical  cap  for  participating  in  H-DAM  market segment that has been carved out for those generation systems where the cost of generating power may cross Rs.12/unit (gas / imported coal / RE plus storage etc.). This cap is also being reviewed. However, competitive forces would ensure a  reasonable rate  with  better  portfolio  management  by  all  the  States  including Kerala.

**************

ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PARTS (a) OF UNSTARRED QUESTION NO.   3894 ANSWERED IN THE LOK SABHA ON 23.03.2023 **************

The power supply position of Kerala in terms of energy and peak during the last year i.e. 2021-22 and the current year i.e. 2022-23 (period April, 2022 to February, 2023)

|                            | ENERGY (MU)        | ENERGY (MU)     | ENERGY (MU)         | ENERGY (MU)         | PEAK (MW)   | PEAK (MW)   | PEAK (MW)      | PEAK (MW)      |
|----------------------------|--------------------|-----------------|---------------------|---------------------|-------------|-------------|----------------|----------------|
| Year                       | Energy requirement | Energy supplied | Energy not supplied | Energy not supplied | Peak demand | Peak met    | Demand not met | Demand not met |
|                            | (MU)               | (MU)            | (MU)                | (%)                 | (MW)        | (MW)        | (MW)           | (%)            |
| 2021-22                    | 26,579             | 26,570          | 9                   | 0.0                 | 4,374       | 4,364       | 10             | 0.2            |
| 2022-23 (upto Feb, 2023) * | 25,028             | 25,007          | 21                  | 0.1                 | 4,699       | 4,370       | 329            | 7.0            |

(*) Provisional

***************