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Experts say the Supreme Court’s decision last week to dismiss Tata Power’s appeal against the Adani group’s transmission project in Mumbai may pave the way for affordable power in the metropolis.
The Adani Group is setting up two dedicated transmission lines in Mumbai, covering the eastern and western corridors of the city. This includes a 1,000-Mw high-voltage direct current (HVDC) link between the 400 kV Kudus and 220 kV Aarey power stations on the western side. and a second 1,000-Mw transmission line between Vikhroli and Kharghar on the eastern side of the city.
“Together, these two transmission lines will bring 2,000 Mw of power to Mumbai from affordable sources,” said Pramod Deo, an energy expert and former chairman of the Central Electricity Regulatory Commission.
Mumbai-based energy expert Ashok Pendse said on an average, nearly five million consumers in the city would be charged around Rs 7 per unit of energy. “This could come down by as much as Rs 2 per unit due to ease of transmission disruptions,” he said.
The Vikhroli-Kharghar transmission line by the Adani Group will come up in the second half of calendar year 2023, while the Kudus-Aarey line is expected to be completed in two years, that is, by the end of calendar year 2025. Industry sources said.
In response to the letter, an Adani Electricity spokesperson said, “Adani Electricity is targeting to meet 30 percent of Mumbai’s electricity needs through renewable energy sources. Currently purchasing electricity from a hybrid power plant of 700 Mw. The upcoming transmission line will support Mumbai’s distribution system to import additional renewable energy and help end Mumbai’s dependence on thermal plants located within the city limits.
Apart from Adani Electricity, Tata Power and Brihanmumbai Electric Supply & Transport Undertaking (BEST) supply power in Mumbai. A letter sent to Tata Power regarding its future plans for power procurement for Mumbai did not elicit a response till the time of going to press.
But Mumbai’s current peak power demand is around 3,500 Mw. This is growing at a rate of 5-7 percent per year, according to analysts’ estimates.
The Adani Group, through its Dahanu unit, near Mumbai, generates 500 Mw, which is supplied to consumers in Mumbai. An additional 1,500 Mw is being procured from external sources by the Adani Group for supply in Mumbai. This includes renewable energy sources including wind and solar energy. On the other hand, the Tata Group, through its units at Trombay and Lonavala, produces nearly 1,500 Mw of power, which supplies its consumers as well as the best companies in Mumbai.
However, with the ever-expanding power demand in Mumbai, Deo said there will be both additional power sources as well as dedicated transmission lines to ensure smooth power supply. “Traditionally Mumbai has faced power transmission capacity constraints. Now hopefully that will be solved with two dedicated lines (from the Adani group) in the near future,” he said.
After several blackouts in Mumbai, the Maharashtra Electricity Regulatory Commission (MERC) in 2013 gave its approval to a detailed report on the Aarey-Kudus power transmission project of Reliance Energy, which is led by the Anil Ambani group. However, MERC, which is the nodal agency for all transmission projects within the state, decided to change the scope of the project, sending it back to the drawing board, where it remains until 2018.
After taking over the power distribution business in suburban Mumbai from Reliance Energy in 2018, the Adani Group revived the transmission project and secured a license from MERC in March 2021. This was challenged by Tata Power at the Appellate Tribunal for Electricity (APTEL) as well. As the Supreme Court reasoned that the project was awarded to the Adani Group without competitive bidding. Both APTEL and the apex court dismissed the challenge.
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