CorporateOrissa cabinet approves 2x 660Mw configuration for OPGC expansion
The Orissa cabinet today approved a proposal of the Orissa Power Generation Corporation (OPGC), a joint venture between the Orissa government and the AES, to adopt super critical technology with a configuration of 2X260 Mw and sharing of power for the proposed expansion of unit 3 and unit 4 of the Ib Thermal Power Station of OPGC.
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The cabinet chaired by the chief minister Naveen Patnaik also allowed OPGC a time gap of 6 months between the commissioning of the 3rd and 4th units.
However, in case of delay in commissioning of the 4th unit beyond 6 months, OPGC would have to give 450 Mw from the 3rd unit against the approved 420 Mw.
The cabinet nod for the OPGC proposals is expected to pave the way for signing of the Power Purchase Agreement (PPA) between OPGC and the state owned Grid Corporation Of Orissa Ltd. (Gridco).
Briefing the media, Pradeep Kumar Jena, energy secretary said, the state cabinet in one of the earlier meetings had decided that OPGC should take expeditious measures to commission unit 3&4 with an installed capacity of 2X600 Mw. It was also decided that OPGC will supply half of the power generated from these units to Gridco and in no case the power share of the state should be less than 420 Mw.
Though OPGC contemplated to use sub-critical technology for the proposed expansion, the Expert Appraisal Committee (EAC) of the Union ministry of environment and forests, during the presentation on the project, emphasised on adopting the super-critical technology. Besides, the super critical units are now a days preferred options due to improved plant efficiency and operating plant flexibility. So OPGC’s request to a go for a configuration of 2X660 Mw was accepted by the cabinet.
As both the units will not be commissioned at the same time, there will be some time gap between the commissioning of the 3rd and the 4th unit. In this situation, providing 420 Mw to the state or Gridco from the 3rd unit before commissioning the 4th unit will bring in difficulty in achieving the financial closure.
In this backdrop OPGC had requested the state government to allow it to sell 50 percent power from the 3rd unit (i.e. 264 Mw from a total of 528 Mw at a PLF of 80 percent) for a period of 6 to 9 months till the 4th unit is commissioned.
Though the cabinet accepted a time gap of 6 months, it put a rider that in case there is delay beyond 6 months in the commissioning of the 4th unit, OPGC will have to provide 450 Mw power from the 3rd unit instead of 420 Mw as decided by the cabinet earlier.
Jena said, the state government has asked OPGC to expedite the tender process and the EPC tender will be finalised soon. The preliminary work pertaining to the project has taken off and the financial closure is expected to be achieved by June 2010, he added.