Bihar to venture into solar energy amidst claims of coal shortage and looming power crisis

The claims of a looming power crisis due to the shortage of coal has affected the entire part of India. Bihar, which is dependent on power from coal-based generating units of NTPC in Baadh and Aurangabad districts of the state has been providing only 2200 MW out of the estimated 4500 MW as per the power purchase agreement with NTPC, in the last 2 weeks.

Henceforth, keeping in mind the shortage of coal and the huge cost involved in the construction of coal-based thermal generating units, the Bihar government has decided to venture into solar-based renewable energy. The government is now planning to allocate the two plots of 1000 acre land meant for thermal power generation units in Kajra and Pirpainti in Bihar for solar-based renewable energy which will have the capacity to generate 600 MW solar energy. 

Speaking exclusively to Republic TV, the Chairman of Bihar state power holding company and energy secretary, Sanjiv Hans said "Since it's a policy of the Bihar government not to enter into conventional power generation, we will be looking more for renewable options like solar and hydel power projects. Recently we have also cleared one hydroelectric project in Dagmara. So, we are foraying into renewable energy, and we are not thinking about coal-based energy. Input cost of power purchase for coal-based thermal energy is very high which includes huge transportation cost as well."

He further said, "Over a period of time, Bihar has improved its distribution capacity by constructing power substations all over the state, which was instrumental in an uninterrupted power supply. Sanjiv has said, "The recent crisis which has had a global effect, including that on India is also part of that. The impact which is being felt is because of the 17 per cent demand. It was suppressed due to the first and second waves of COVID. No one was expecting a rise in the demand. Due to the monsoon, the transportation of coal was disturbed. Since Bihar doesn't generate electricity and we have done a power purchase agreement through NTPC which is around 4500 MW. A week back, it fell short by 2200 MW and the coal shortage was one of the reasons. In Bihar, one of the thermal power stations at Baadh is under maintenance; if that starts operating, part of the problem can be resolved. We also faced a shortfall of 1900 MW during peak hours against the daily demand of 4000 MW. We could get around 30 per cent of the auction from the power purchase from the exchange."

Improved power supply

The chairman of BSPHCL further said, "The government is committed to providing nonstop power supply to consumers, especially during the festival season. Since the demand-supply situation is adverse, the rates of power purchase are at a peak. Since the last two days, we are witnessing a small decline in the prices during peak hours which has fallen to Rs 14-16, which has led to improvement in the power situation. Also, the supply of coal to NTPC has also improved, so looking forward, we expect this supply to improve. "

The financial burden on the exchequer 

Due to the recent coal shortage, the State government has to spend around Rs 6-20 crore for the purchase of power for uninterrupted supply during this festival season. Sanjiv Hans further said, "Regarding the extra cost the company is bearing, depending upon the rates in the real-time market, the peak limit is Rs 20. If we calculate, we have spent around Rs 6 crore/day to Rs 20 crore/day. We are primarily dependent upon power from the NTPC plant. NTPC is owning many coal mines.

Assurance from Union Power Minister 

Union Power Minister, who hails from Bihar, has assured all possible help to the state and the Chairman of BSPHCL said, "Recently the union Power Minister has also assured that 40-45 days coal stock is available and Bihar will be getting its quota. "Coal accounts for nearly 70 per cent of India's electricity generation and approximately three-quarters of the fossil fuel are mined domestically."

International coal prices have soared following the two waves of the COVID pandemic, monsoon rains that have flooded the coal mines, and more disrupted transport networks that led to a sharp rise in prices for the coal buyers. Learning its lesson from the global coal crisis, the State government is proposing to venture into renewable energy by this year-end on a large scale.