Thursday, October 30, 2008

Captive power generation, the answer?

Along with the staggered-holiday system for industrial areas, the Bangalore Electricity Supply Company (Bescom) is thinking of asking the industries to go for captive power generation during peak hours to help tide over the power shortage, which is expected to increase further in the coming months.

The proposals to tackle power shortage also include a time of day metering to charge more for power during peak hours. Staggered holidays, energy efficiency systems, audits, etc are other measures. Regarding use of captive power, it’s a toss up between the Pune model where the industries were compensated by increasing charges on the consumers (who benefited by the industries staying away from the grid at peak hours) and the TN model that exempted the industries from tax on the fuel used.

The interesting point is that the Pune model itself is taking a beating, arising out of increased demand!

Initially mooted by some 30 CII member industries who offered to use captive power plants (CPP) to generate and consume about 80 MW power so that the power shortfall in Pune can be met, the model fell into trouble soon enough due to some conditions. And Pune went into long hours of load-shedding. It was partly solved when Tata Power Trading Company Ltd started securing additional electricity on 'day ahead' basis but soon enough MSEDCL refused to accept power on 'day ahead' basis and insisted on 'firm' power, i.e. power contracted in advance.

The potential for captive generation is around 1500 MW in Bangalore city alone. But obviously, running diesel sets for power will mean more than a tripling of costs for the companies. Not to mention the air pollution. It would make sense to go for captive generation based on renewable resources. In fact, suggestions have been made on how renewables should be made compulsory for industries.

Staggered holidays and staggered work hours is a good idea, as also time of day metering. In fact, in an article published in the Times of India on Oct 10, 2008, Enzen had advocated these measures. (Unfortunately the article is not available online. For more, visit our site http://www.enzenglobal.com/)

Are there other steps we are missing out on? If you have heard of any, do let us know.

1 comment:

Sunil Sood said...

What Demand Side Management Cell of BESCOM is doing? They do not have any idea how to manage demand? Of course they know what needs to be done but why they are not doing it.The answer will reveal shocking information.