In a first of its kind, Tata Power’s North Delhi Power Ltd (NDPL), the power distribution company for the area, is planning to set up 100MW of dedicated electricity generation capacity.
The move, which will benefit consumers in north Delhi, is estimated to cost Rs150 crore, and will help to meet 9% of NDPL’s power demand of 1,100MW and 3% of the Capital’s total power demand of 3,500MW. It will also help NDPL as the distribution companies have to procure power after the formation of the Delhi Power Procurement Group apart from catering to the increased demand during the Commonwealth Games 2010.
The power demand in the city is expected to go up to 4,100MW this summer, compared with 3,000MW last year. Of the total electricity needed, only 995MW is generated by the power stations owned by the Delhi government.
“We are planning to set up four units of 25MW each. Distributed generation is a standard technology that is available off the shelf,” said Arup Ghosh, chief operating officer, NDPL. Distributed generation means that the power generated is not transferred to the grid, but is distributed in the adjoining area. Of the present power demand in Delhi, 31% is from NDPL areas. Demand from these areas is expected to go up to 1,600MW by 2011 from the present 1,100MW.
The company is looking for a site, along with Indraprastha Gas Ltd (IGL), as gas will be used as a fuel for generating power. “We have already talked with IGL and they have agreed to supply gas to our project. Even if the gas is supplied at $8 (Rs344) per million British thermal units, we are fine with it,” Ghosh said.
As the company is already buying power at peak rates, it is hopeful that such a proposition makes viable business sense. “Even if the gas is reasonably expensive, it will be a good alternative,” he added.
P.S. Bami, former chairman and managing director, NTPC, welcomed the move. However, he said: “If one is able to generate its own power, it is a good thing for the distribution company. However, whether NDPL is able to get the gas is left to be seen. Setting up distributed generation sets is a wise thing to do and will be able to make a difference,”he added.