Report on Optimal and Market Based Utilization of Electricity Supply Resources of Assam

The Second objective is to suggest gainful utilization of the present surplus generation during the day and upcoming solar generation, in the state of Assam. APDCL has tied up with 1949 MW capacity from three major sources: Hydro, Gas, and Coal, almost in equal capacity, which contribute to 86% of the total electricity procured in FY 2019-20. Despite equality in capacity, Hydro contributed to only 19% (2,086 MUs) while Gas and Coal contributed to 33% (3,600 MUs) and 34% (3,711 MUs) respectively, of total generation. The plants operate based on the cost-based merit order system. The average variable tariff of Hydro, Gas, and Coal is INR 1.75/kWh, INR 2.13/kWh, and INR 2.93/kWh, respectively. APDCL frequently exports to and imports from IEX. Majority of exports to IEX is between 12 midnight to 5 PM. Out of 1,477 MUs exported to IEX in FY 2019-20, 1,303 MUs is exported between 12 midnight to 5 PM. APDCL realized INR 2.49/kWh for the exports to IEX during this period. The export becomes necessary due to the high demand during the day, which is met by importing power from IEX. The study analyzed the existing supply side resources, their operation, capacity, tariff, supply and demand pattern, import and export from power exchange (IEX). The supply and the demand data for the FY 2019-20 was collected and analyzed in an interval of 15 minutes. The team conducted several discussions with the team from APDCL and officers from the State Load Dispatch Centre of Assam. The team also examined the per capita consumption of electricity in the state, price elasticity of electricity, and correlation of electricity with economic activities. The study suggests that APDCL can optimize its operation by adjusting the merit order of the power plants based on the real-time demand and supply pattern. This can help in reducing the export and import of power from IEX and also reduce the losses incurred due to transmission and distribution. The study also suggests that APDCL can utilize the present surplus generation during the day and upcoming solar generation to meet the increasing demand of electricity in the state. The study also analyzed the rebate schemes implemented by other states and the proposed methodology for demand generation when APDCL has surplus power. The study suggests that APDCL can implement similar rebate schemes to encourage the consumers to use electricity during off-peak hours and also reduce the demand during peak hours.