The power generation cut is due to lack of buyers for surplus power generated in the state.
Even as majority of the Indian states struggle to meet the peak summer demand for electricity, the Gujarat government has resorted to a cut in power generation owing to lack of buyers for surplus power generated in the state.
The reduction in electricity generation, more commonly known as backing down, was to the tune of 406 million units of power in April 2011. The backing down more than doubled to 820 million units in May. The power generation from gas and thermal power plants has been reduced.
What is more is that the government expects power generation in the state to continue to be lower than the generation capacity due to lack of buying interest from other states.
“The backing down on power generation was to the tune of 7,421 million units in 2010-11. But, looking at the first two months, it is likely to be even higher during the current financial year,” said an energy department official.
The state government is attributing the cut in power generation to other states’ unwillingness to purchase electricity.
“The other states don’t want to purchase electricity - rather they do not have the resources to buy power - and are resorting to load shedding. This is why we have significantly scaled down power generation in the past couple of months,” state energy minister Saurabh Patel, said.
Officials also attribute the lower generation to lack of power connectivity with other states.
“Gujarat has surplus power, but unfortunately, there is no regional connectivity to enable the state supply power to other states. Since we cannot divert the power in absence of a link, generation has to be controlled,” said an energy department official.
The state’s peak electricity demand in summer is around 6,500 million units. State government officials said that power generation is being maintained at these levels to ensure that there is no deficit within the state.
It may be worth mentioning that Gujarat sold power worth Rs1,450 crore to other states between 2008 and 2010. According to the energy minister, the state sold power worth Rs353.21 crore in 2008, worth Rs392.75 crore in 2009 and worth Rs704.88 crore in 2010 to other states.
“We are expecting sales to other states to rise in the coming years as many power projects will go on stream in the state,” he said.
The minister also said the state’s priority was to supply adequate power to its citizens. However, surplus power was supplied to other states to help them meet their power requirements.
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