Karnataka Power Corporation Targets Capacity Addition of 6,000 Megawatts by 2015

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Researched by Industrial Info Resources (Sugar Land, Texas)--Karnataka Power Corporation Limited (KPCL) (Bangalore, Karnataka) has embarked on an expansion program to augment power production capacity to meet demand from end users and utility firms in the region. KPCL is looking to double production capacity to 12,000 megawatts (MW) by 2015 from the present capacity of 6,000 MW generated from both conventional and renewable energy ventures in the state of Karnataka. A series of greenfield and brownfield ventures has been envisaged to meet the targeted capacity.

Thermal power ventures in the state account for about 30% of its power generation potential. As a part of the capacity expansion exercise, KPCL is looking to add an eighth unit of 250 MW to the 1,470-MW Raichur thermal power station during the current fiscal year. The power plant comprises seven units of 210 MW each.

In collaboration with Bharat Heavy Electricals Limited (BSE:500103) (BHEL) (New Delhi), KPCL is planning to develop large thermal power plants at Yermarus and Edlapur in Raichur district, each with an initial capacity of 660 MW. The Yermarus facility eventually will be expanded to accommodate another unit of 660 MW.

Another mega-thermal power venture in the cards is a 1,200-MW thermal power plant, due to be built in Chhattisgarh at an investment of about $1.25 billion. With 1,240 acres of land and clearance for water sources already secured, the venture is set for commissioning in 2010, and is expected to be completed 36 months later. Coal feed for the Chhattisgarh plant will be supplied by South Eastern Coalfields Limited (Bilaspur, Chhattisgarh) from nearby mines in Northern Karnataka.

Meanwhile, KPCL has reported financial closure for Unit 2 of the 500-MW Bellary thermal power station, having secured funds of about $418 million for the venture.

Hydropower ventures account for about 60% of Karnataka's power output. KPCL operates 12 hydropower plants across three major rivers in the region: Sharavathi, Kalinadi and Varahi. Six plants with a combined capacity of 1,508.4 MW are located on the Sharavathi River; four plants on the Kalinadi River generate about 1,240 MW; and two plants on the Varahi River produce 239 MW.

Apart from thermal and hydropower ventures, independent and captive power plants contribute to the state's power output, as well as small wind, solar and diesel plants and the nuclear power plant at Kaiga, accounting for the remaining 10% of total power generated.

In a more recent development, Karnataka announced plans to develop a liquefied natural gas (LNG)-based power plant at Tadadi in Uttara Kannada, in place of a thermal power plant that had been originally proposed. The $1.67 billion plant has been planned in two phases of 2,100 MW each. Each phase, in turn, will consist of three units of 700 MW each. The facility will have an installed capacity of 4,200 MW when fully operational. Required natural gas for the venture is proposed to be imported through the sea-route, while desalination plants will be developed to address the water requirement.

The first phase of the plant is expected to be completed about three years from the time of finalizing the global tender, which has drawn a favorable response. About 16 firms, including both global and domestic players, have expressed interest in setting up a dedicated LNG terminal at Tadadi. Gas requirements for the first phase are estimated to be about 2.66 million tons per year, at 95% plant load factor. A similar input requirement is applicable to the second phase of the venture as well. LNG suppliers such as Petronet LNG Limited (BSE:532522) (New Delhi) have shown interest in supplying gas to the venture.

The scope of the tender includes an expansion of facilities at the Tadadi port to cater to LNG import loads, as well as the development of a captive LNG supply terminal; a regasification unit to unload, handle and store LNG; an 8-kilometer pipeline to transport feedstock from the regasification facility to the power plant; and a residential colony in the vicinity of the plant.

KPCL operates 25 power stations and 34 dams in the state of Karnataka, with ventures capable of generating 350 kilowatts to 1,035 MW of power.

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