Meeting Peak Demand: Haryana’s 689 MW Round-The-Clock Power Procurement Bid

A recent petition was brought before the Haryana Electricity Regulatory Commission in Panchkula by the Haryana Power Purchase Centre (HPPC). The petition sought approval for the procurement of up to 689 MW of round-the-clock power through a competitive bidding process for the period from June 1, 2024, to July 31, 2024. This request was made to address the anticipated power deficit during the peak summer and paddy seasons in the state of Haryana.

The petition highlighted several efforts by HPPC to secure sufficient power supplies. These included short-term and medium-term tenders, along with power procurement from the Power Finance Corporation Consulting Limited (PFCCL) under the Shakti Scheme and additional allocations from central generating stations and cross-border power from Nepal. Despite these arrangements, HPPC projected a significant power deficit for the upcoming peak months.

HPPC presented detailed demand-supply projections, showing deficits ranging from approximately 1,003 MW to 2,411 MW from June to September 2024. The projections considered various factors, including the rapid industrialization and urbanization in the state, which falls within the extended National Capital Region. Additionally, the agrarian nature of Haryana’s economy, with substantial power requirements for agricultural activities during the summer and paddy season, was also considered.

Historical data was provided, showing a steady increase in peak power demand over recent years, with an expected peak demand of 14,287 MW for the fiscal year 2024-25. The India Meteorological Department (IMD) had forecasted above-normal temperatures for most parts of the country, particularly central and western India, further exacerbating the power demand situation.

HPPC’s petition also detailed the challenges of relying solely on day-to-day power purchases from exchanges, citing high costs and unreliable supply during peak hours. They emphasized that relying on such a strategy would likely lead to large-scale power cuts, adversely affecting the state’s economic activities.

To mitigate these challenges, HPPC proposed a tender for short-term power procurement for June to September 2024. The tender process was conducted through the National e-bidding portal, and a screening committee was set up to ensure compliance with the Model Code of Conduct during the election period. After receiving approval from the Election Commission, the tender process proceeded, and several bidders were found technically qualified.

The final bid prices were established through an e-reverse auction. The selected bidders and their corresponding power sources were listed, along with the quantities and rates. For June 2024, the weighted average rate was determined to be ₹8.22 per unit, while for July 2024, the rate was Rs. 6.32 per unit. The combined average rate for the two months was ₹7.32 per unit.

The petition emphasized the urgent need for additional power to meet the rising demand and avoid power cuts, especially during the peak summer and paddy seasons. The Commission considered the demand-supply position and the potential impact of power shortages on consumers. It acknowledged the challenges faced by HPPC in securing reliable power supplies and the high costs.

Please view the document here for more details.