By Our Reporter
SHILLONG, March 1: The state’s power sector has been in a shambles for decades despite loans, cancelled agreements and frequent reshuffling in the Meghalaya Energy Corporation Limited but the state government is now hoping for a turnaround with the new draft power policy which was approved recently.
Meghalaya has a huge hydroelectric power potential amounting to nearly 3,000 MW, but the Meghalaya Power Generation Corporation Limited (MePGCL) has been able to harness only 13% of it.
The power potential harnessed so far is 378 MW with another 300 MW under implementation.
According to the draft policy, a four-pronged strategy has been proposed by way of participation of central, state, private sectors and joint ventures. This participation shall be through open bidding/memorandum of agreement route.
The policy also talks about allotment of the projects on build, own, operate and transfer (BOOT) basis, and independent power producers for the development of self-identified projects and adoption of river basin approach for development of hydropower.
Some of the objectives of the power policy are to develop power projects through hydro, thermal, pumped storage, solar, wind etc., in a sustainable manner and improve the efficiency for the operations of the existing power plants and the generation utility as a whole.
The government also wants to form the State Power Trading Company with the objective to execute power purchase agreements, undertake short-term purchase on behalf of State Distribution Utility, and undertake PPA with new renewable power plants in the state and management of the power in efficient manner.
The company will facilitate the improvement in process and better management of power portfolio in the state besides executing power purchase agreements with other trading companies, central generating stations, other state utilities and companies.
It will also finalise tender and contracts for power purchase from new generation plants (both under state and central sectors), including independent power producers.
A State Level Committee has also been proposed to overlook the process of clearances and development of all power projects in the state. It will identify the projects, facilitate government land transfer/lease and monitor the projects.
Under this policy for large and mega projects above 100 MW capacity, the projects are to be allotted through the international competitive bidding route in a transparent manner unless they are handed over to Government of India undertakings or a state PSU.
The state government has also proposed financial assistance for the development of hydropower projects, like 7.5% of the capital cost for projects upto 25 MW, 5% of the capital cost for projects above 25 MW and upto 100 MW and 2.5% of the capital cost for projects above 100 MW.
The government also intends to go ahead with the development of pumped storage hydropower project.
As far as support for this project is concerned, government land is proposed to be allotted for the project site at a notional lease rental of Rs 1/acre and benefits available for the industries under the existing or any amendment in the industrial policy will also be extended to the developers.
The government has proposed to develop a thermal power project of the capacity of around 250 MW under the policy. It is proposed to make Meghalaya Power Generation Corporation Limited as the nodal agency for the development of the project.
The policy also aims to achieve a minimum of 100 MW of solar capacity addition by 2030.
The policy states that the government also wants to develop wind power projects as the National Institute of Wind Energy has estimated a potential of 44 MW of wind energy in the state at 50 metre level. This potential further increases to 82 MW at 80 metre level.
The policy aims at harnessing the wind potential to max level both at 50 metre and 80 metre by 2030.