VIJAYAWADA: To rationalize short term electricity supply, Andhra Pradesh Electricity Regulatory Commission has notified APERC (Terms and Conditions for Short Term Electricity Supply/Sale) Regulations of 2022 in the Extraordinary Gazette of Andhra Pradesh on 10 February 2022 after public consultations. This regulation is the first of its kind in the country.
The increase in the share of renewable energy capacity (about 50% of total installed capacity), which is intermittent and unpredictable in nature, forces Discoms to source energy from the market in the short term to meet the shortages when there is a decline in generation from renewable sources, including wind and solar power plants.
With the addition of renewable capacity each year, the share of short-term electricity purchases has increased. In addition, most future capacity additions to the state grid are likely to come from renewable energy sources, particularly wind and solar power plants, due to their falling prices and the Center’s commitment to reduce the emission level in accordance with the Paris Agreement. As a result, the share of short-term purchases is expected to increase in the future.
The regulations mandate the publication of the monthly/weekly/day-ahead electricity requirement communicated by the SLDC to the Discoms and the details of the electricity supply on the Discoms’ and SLDC’s websites within 48 hours, with ease access to current and archived data. The above information must also be periodically submitted to the Commission.
The settlement is part of a series of transparent measures taken by the commission to reduce the overall electricity purchase costs of Discoms and to improve their efficiency in the general interest of consumers. It can be consulted on the Commission’s website.
24X7 cell essential
A dedicated 24 hour common cell should be formed by the Discoms with the power to monitor prices in power exchanges and buy/sell power at the right time to reduce overall costs.
Electricity purchase regulations are the first of their kind in the country
Monthly/weekly/daily power requirements communicated by the State Load Dispatch Center (SLDC) to Discoms and electricity supply details must be posted on the Discoms and SLDC websites within 48 hours. Information must be submitted periodically to APERC
Ensuring full shipment of cheaper electricity from approved thermal power plants, reducing power purchase costs
APERC outlines procedures for stockpile closures, demand estimation based on the latest AI tools and when to resort to market buying/selling by Discoms