KERC asks escoms and KPCL to prepare demand report for 10 years

Considering the rising power demand in the state and to ensure uninterrupted power supply, the Karnataka Electricity Regulatory Commission (KERC) has published the draft Resource Adequacy Framework that directs the electricity supply companies (Escoms) and the Karnataka Power Corporation Limited (KPCL) to prepare a demand assessment report for the next ten years. 

Based on the report, the framework has detailed timelines for procurement of resources and if approved, the power generation corporations may have to procure resources in advance to meet the projected demand.

“The distribution licensee must ensure that the procurement process for the projected demand is undertaken and completed sufficiently in advance so that the procured capacity becomes available when it is required to serve the projected load,” the draft regulations said. 

For instance, the draft policy states that distribution companies will have to procure resources, such as coal and lignite, two years in advance based on the medium-term demand projections.

“The aim is to ensure reliable power supply in the long term and for that, there is a need to prepare now. If the state is not well prepared, there are chances of interruptions in power supply, generation loss, and load shedding. The framework, once implemented, will avoid such problems,” a senior KERC official told DH. 

No technical framework

While the energy department does some planning to understand the future needs, at present, there is no technical framework based on which the power demand is estimated. The framework aims to bring in uniformity in assessment and preparedness in line with the guidelines prepared by the central government. 

“There is some local planning that every department takes up. But, we are not sure how technical and methodological it is and there is a need to streamline the process in line with the Central government’s guidelines,” the senior officer added.

The framework lays out a four-step approach to ensure preparedness to meet the increasing demand: demand assessment and forecasting; generation resource planning; power procurement planning; and monitoring and compliance.   

Every year, by April 30, all the escoms have to submit a demand assessment plan for the following ten years to the State Level Despatch Centre (SLDC). 

Strict deadline

Following this, the SLDC will prepare a resource generation plan and further submit it to the higher authorities. This way, the framework sets a strict deadline to plan resources for the future. 

The KERC has now sought public opinion and suggestions on the Draft Karnataka Electricity Regulatory Commission (Framework for Resource Adequacy) Regulations, 2024. The public can write to the commission within May 29.