Energy & Power - August 16, 2020
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A public debate is going on in the country over power generation capacity. Critics say the power system is maintaining substantially an overcapacity, putting additional burden on the consumers and the government exchequer. They argue that this overcapacity or higher spinning reserve has increased the generation cost, forcing the utilities to get subsidy from the government and raise the retail tariff. Imported fuel is also responsible for increased cost of power. There is also a strong argument that the surplus capacity is being maintained to benefit the private sector investors on political ground. On the other hand, the high government officials in the sector claimed that the actual generation capacity is not much considering the difficulties on ground. The gas supply shortage alone limits the generation capacity by 2,500 MW out of the total gas-based capacity of 11,000 MW. Of the present total installed capacity of around 20,300 MW, only around 14,000 MW can be produced now after managing various difficulties. The situation would not have created if the power system got adequate supply of own fuel like gas. The government should explore and exploit own energy resources to overcome the difficulties in future.
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