PPAs unlikely to be scrapped as dependency on private plants high in Punjab

When Chief Minister Capt Amarinder Singh said all power purchase agreements (PPAs) made with independent power producers (IPPs) and other power generating companies cannot be scrapped, he was not off the mark. After all, no government can afford to jeopardise the energy security of the state it governs.

Together, the three IPPs, caught in the midst of a political storm over the alleged lopsided PPAs signed with the previous Akali-BJP government, are supplying 2,948 MW of power to Punjab in this time of “high power demand” during the paddy cultivation season. As of today, the state is buying another 2,248 MW on the power exchange, at a high cost of Rs 5.08 paisa per unit. In comparison, the state’s own thermal power generation is just 1,045 MW and its own hydropower generation is 804 MW, besides renewable energy generation of 554 MW.