Impact of Birfucation on power sector in Andhra Pradesh

The bifurcation of the combined state into Andhra Pradesh and Telangana had an adverse impact on Andhra Pradesh. The allocation of power from APGENCO stations has been done based on G.O. 20 dated 08th May 2014 which has allocated 46.11% of the total capacity of APGENCO stations (Existing & Under construction) to Andhra Pradesh. This figure was arrived at based on consumption of FY 2006-07. Though the ownership of power stations is with the respective GENCOs based on geographical location, power was not allocated based on geographical location. The allocation of power based on G.O 20 instead of allocation based on geographical location has resulted in a capacity loss of 1,142 MW to Andhra Pradesh as detailed in the table below. This would result in an annual energy shortage of 8,700 MU for the state. The financial impact on the state over the PPA term for meeting this shortfall from open market would be an NPV of around Rs 10,000

Impact on capacity from Central Generating Stations

As per AP Reorganisation Act, power of Central Generating Stations (CGS) should be allocated based on last 5 years consumption (AP – 47.88%). However, the allocation from CGS was done based on FY 2006-07 consumption only (AP – 46.11%). Due to this, AP has lost a capacity of 62 MW which implies an energy loss of around 422 MU per annum.

-- Extracts from the white paper on power sector in Andhra Pradesh