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Jaitapur may address Maharashtra’s rapidly growing energy needs

The strongest argument in favour of the Jaitapur Nuclear Power Plant (JNPP) is the size of the project — 10,000 MW, half of which will be directed to power-thirsty Maharashtra.

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The strongest argument in favour of the Jaitapur Nuclear Power Plant (JNPP) is the size of the project — 10,000 MW, half of which will be directed to power-thirsty Maharashtra.

Maharashtra’s current demand is about 16,000 MW of which 13,500 MW is being met through various sources (such as the state-owned Mahagenco), which includes the purchase of about 1,500 MW from outside. As a result, several parts of Maharashtra have been reeling under load shedding durations of six to eight hours. A few years ago, the situation was so grim, that load shedding was as high as 18 hours a day.

The JNPP is expected to conclude in 2019-20, when demand for electricity is expected grow 8 to 10% annually. As per the presentation made by the Maharastra State Electricty Distribution Company Limited (MSEDCL), the demand will grow to 23,800 MW.

With several projects by Mahagenco at Bhusawal, Koradi, Khaparkheda and Paras, and purchase agreements signed by the state with several power utilities that will provide additional 5,000 MW at Rs2.5 per unit, Maharashtra will just about manage to meet peak hour demands, say sources at MSEDCL.

While the state has been able to buy power at a decent rate over the past year (between Rs5 and Rs6 per unit), at times, the cost has shot up to Rs11 per unit, driving the power tariffs through the roof. The situation could go bleak again if the Jaitapur power does not arrive, warn experts.

“Power cost is determined by two factors — the fixed component i.e. the capital expenditure to erect the plant and the other is variable fuel costs. Coal and gas prices are only going to go up as reserves are diminishing fast. This is going to drive the power tariff upwards. In JNPP, however, fuel costs are going to be much lower. So the tariffs will be steady,” explained a senior government official.

While the Nuclear Power Corporation of India Limited (NPCIL) which is erecting JNPP, is not willing to share the exact costs (they will be comparable to costs at contemporary projects around the Jaitapur site, is all the spokesperson would say), conservative estimates by project opponents say it could be around Rs8 to Rs9 per unit.

Given the rising cost of power procured from other sources, this will still be cheaper, claimed an official who pointed out that in just one year, the costs in a decades-old coal-fired plant had risen by over 50%.

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