LNG hopes spur Kerala's power sector plans

The Hindu dated August 30, 2010
http://www.hindu.com/2010/08/30/stories/2010083054560400.htm

THIRUVANANTHAPURAM: Four power projects are in different stages of planning in Kerala on the expectation of liquefied natural gas (LNG) becoming available from the LNG terminal expected to be commissioned in Kochi in another couple of years.

These include a new plant of National Thermal Power Corporation (NTPC) at Kayamkulam (1,050 MW), a new plant of Kerala State Electricity Board (KSEB) at Brahmapuram (1,026 MW), a plant being planned by Petronet in Kochi (1,200 MW) and a plant being contemplated at Cheemeni with Kerala State Industries Development Corporation (KSIDC) as the nodal agency for finding promoters (1,200 MW). In addition to these, the existing 360-MW NTPC plant at Kayamkulam and 157-MW Reliance plant in Kochi are also hoping to shift from naphtha to LNG when LNG becomes available for them.

The envisaged LNG-based power generation from all these plants would thus come to 4,983 MW, a substantial jump in power generation in a State where the total installed capacity, hydel and thermal inclusive, is 2,546 MW at present. The State also has access to 1,046 MW of power from the Central pool.

Since the entire installed capacity (within the State and that available to the State under the Central pool) will not translate into day-to-day flow of energy into the grid, due to technical reasons and occasional plant shutdowns, Kerala is now only just about managing its peak-load demand, which is around 3,000 MW at the moment. The peak-load demand is expected to go up to 3,500 MW by 2012, according to the latest power survey. By then an additional capacity of around 500 MW will become available to the State from new Central stations and capacity additions at existing Central stations outside the State.

The planning wing of the KSEB now sees a situation close to power sufficiency for a couple of years, provided the monsoon also behaves normally. However, after 2012 or may be 2013, the State may experience power shortage unless the new stations, currently at different stages of planning, too fall into position in a phased manner. In addition to the LNG-based plants in the plan, a 1,300-MW coal-based plant of the KSEB, to be established at Cheemeni, too is in the pipeline in the State.

“The key is in going ahead with these plans in a phased manner,” a top KSEB official told The Hindu. “The planned capacity addition is of a gigantic proportion and if the plants come up too soon it may turn out to be a big financial burden for the State's power sector since power purchase arrangements will be on ‘take or pay' principle.”

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