Summer-ising Electricity- Know-why of brown outs and power cuts

03 May 2022

Summer started early this year and caught power sector supply chain on the wrong foot. Despite having 399.5 Gigawatt (GW) installed capacity, it became difficult to catch up with actual peak demand of 203.7 GW. Andhra Pradesh, Karnataka and Maharashtra were facing power cuts in March 2022. Gujarat mandated one day off for Industries to deal with situation. It is learnt that rural areas in many other States are facing power cuts.  During the financial year (FY) 21-22, Central Electricity Authority (CEA) projected 6.4 % energy surplus of 94222 MU, whereas actual shortage was of 0.4 % at 5845 MU. CEA also projected peak power availability of 222.7 GW and surplus of 8.2% during FY 21-22. Actually, India faced shortage of 1.2 %. Power frequency (50 Hz) is an indicator of status of power position. It touched 49.84 on 7th April 2022 and 49.44 on 19th April 2022. CERC capped power exchange prices to Rs. 12 per Unit this year to avoid profiteering. This measure was enforced after 13 years. With the recent price cap, the market clearing price remained Rs 12 per unit for 18 hours on 21st April 2022. Whereas, from 8:30 to 14:30 hours, the prices were between Rs 10 to Rs 12. Some of the States are buying power at Rs. 12 per unit to fulfil freebie promises. If permitted by State regulators, the additional power purchase costs will be passed through to consumers through true up exercise.