Harippad: NTPC said that Kayamkulam power plant can produce electricity at a reduced rate of Rs 2.94 per unit as the value of Naphtha has dipped. KSEB has not been purchasing electricity from Kayamkulam for more than five years as the rate had gone up to Rs 15 per unit. This has given way to the use of the plant that has been closed down. NTPC has informed KSEB regarding the reduced rates.
The price of petroleum under the current context has impacted the rate of Naphtha in the global market. Currently, Naphtha costs Rs 12,325 per metric ton. In 2014, Naphtha rate was at Rs 76,000 per metric ton. The rate of electricity was at Rs 15 per unit then. It was during this period, KSEB decided not to purchase electricity from Kayamkulam.
Due to the lockdown, electricity generation has come down by 30 percent. There has been a reduction in the amount of electricity purchased from outside as well. Utilization of Kayamkulam plant would mean that electricity can be procured at a reduced rate and also profit in releasing charge category.
The fall in Naphtha price in the international market means that cost of electricity from Thermal power plants is less than that of solar electricity. KSEB was planning to purchase electricity at a rate of Rs 3.16 per unit from the 92 mega watt solar power plant. Under the current context, electricity can be bought at a rate of Rs 2.94 per unit from the thermal power plant.
The decision to set up a Naphtha fuelled thermal power plant was taken in 1998. Naphta costs around Rs 6000 per metric ton then.