AP to buy 2,000mw power

With unprecedented power cuts across the state, the APTransco and Discoms have finally decided to go ahead with long-term power purchases to the tune of 2,000mw.
Transco’s earlier decision of not opting for long-term purchase agreements with power trading companies has resulted in huge shortages this summer. Though the government had given permission to Transco to buy more power, lack of transmission lines from the northern and eastern regions had left the state with no option other than to go for more load-shedding.
The late response has, in fact, worsened the situation forcing industries to bear three days of power cuts in a week which have had a crippling effect on the sector.
“We have realised the gravity of the situation and decided to go in for long-term agreements for power purchase which not only ensures supply but also at a reasonable price,” said a senior Transco official.
Transco has decided to participate in Case-I bidding that is exclusively based on price. Companies will give a price and duration at which it will purchase power. If the power generation corporation or trading company agrees to the price quoted by Transco and Discoms, they will enter into a long-term agreement for not less than five years.
Transco is preparing to enter into agreements to buy 2,000mw power every year though the state government has given permission to buy an additional 1,000mw.