KSEB explores ‘swap’ deals with Punjab, Uttar Pradesh power corporations to meet summer demand
The Hindu
KSEB arranges power swaps with PSPCL and UPPCL to meet summer electricity demand, subject to regulatory approval.
Anticipating a spike in electricity demand during the summer, the Kerala State Electricity Board (KSEB) has made arrangements for ‘swap’ deals with the Punjab State Power Corporation Ltd (PSPCL) and the Uttar Pradesh Power Corporation Ltd (UPPCL).
Under these arrangements, which are subject to the approval of the Kerala State Electricity Regulatory Commission (KSERC), PSPCL and UPPCL will supply electricity to Kerala during March, April and May. KSEB will return the favour later this year.
Power department sources said KSEB has issued a letter of award to PSPCL for the supply of 100 megawatts (MW) between midnight and 5 a.m. and 200 MW between 6.30 p.m. and midnight from March 1 to March 31 and from April 1 to April 15.
Likewise, KSEB has issued a letter of award to UPPCL for the supply of electricity during various time slots during March, April and May including 500 MW during the peak evening hours.
Power ‘banking’ or swap deals are cashless transactions wherein two utilities supply and return power to match surplus and deficit situations.
The power swap deals will supplement a clutch of power purchase agreements and other preparations that the KSEB has in place for handling the summer demand.
As per the understanding with PSPCL and UPPCL, the KSEB will return the power in June, July, August and September, the monsoon months in Kerala when electricity demand dips. During the summer, increase in the use of air-conditioners contributes significantly to driving up electricity demand.
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