The Hindu : New Delhi News : Capital seeks permission to generate diesel-based power on Pune pattern

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Friday, Feb 08, 2008
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New Delhi

Capital seeks permission to generate diesel-based power on Pune pattern

Smriti Kak Ramachandran

To help meet demand for short-duration power
Less expensive, can be used during shortfalls

NEW DELHI: If a proposal to generate diesel-based power mooted by the Delhi Government’s Power Department is accepted, cooperative group housing societies, hospitals, industries and commercial complexes that own diesel generating sets will all be contributing to meet the Capital’s short-term energy demands.

The Power Department says use of diesel-based power will help meet the city’s demand for short-duration power at short notice and at affordable prices.

Power Minister A. K. Walia has written to the Delhi Electricity Regulatory Commission to allow replication of the Pune model where diesel-generating sets (DG sets) owned by industry are used to produce energy to meet the demand of domestic consumers.

“We have written to the DERC to allow use of diesel to produce energy that can be used to meet the short-term demands. The diesel-based power will be less expensive and can be used during shortfalls when arranging power from other sources is difficult,” Mr. Walia said.

According to the proposal that has been submitted to the DERC, DG set owners will be encouraged to enter into agreements with the discoms for providing power.

“A large number of group housing societies, hospitals, malls, hotels and commercial complexes own DG sets and use them during emergencies. The discoms can utilise these DG sets to produce energy and pay for the full cost of power. This power can be used for providing uninterrupted supply to others,” explained a Power Department official.

“In Pune, for instance, DG set owners are paid the difference between the normal rate of energy and the cost of generation,” he added.

An additional benefit of using diesel-generated power is the saving that the discoms will make. Officials claim that energy supplied by the DG sets will be comparatively cheaper than power that is purchased from other States.

“Spot market is yet to develop in India and in the absence of adequate capacity it will take some time for such markets to emerge. It is difficult to meet short duration demands at short notices,” the official explained.

Delhi’s “peculiar peak load requirement” has been cited as yet another reason for allowing the generation of diesel-based power. “Delhi’s peak load requirement occurs for a couple of hours on some days in a year. Getting power for such occasions is sometimes difficult. Also, the unscheduled interchange rates have been increased to Rs.10, which is also a cause for concern,” the official said. The Power Department officials claim the suggestion will benefit the consumers, the discoms and the DG set owners: “The consumers will have uninterrupted supply of power, the discoms will get cheaper power and without any hassles, and the DG set owners too will be paid for their services.”

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