A first: DVC seeks to sell 3.7 Gw of power from three thermal units

Damodar Valley Corporation (DVC) has issued 'expression of interest (EoI)' for buying electricity from its upcoming three thermal power units totalling 3.7 Gw

In what could be a first in the power market, Damodar Valley Corporation (DVC) has issued an expression of interest (EoI) for selling electricity from its upcoming three thermal power units totaling 3.7 gigawatt (Gw).
 

The Kolkata-headquartered company in a public notice of EoI for power purchase has listed three of its under-construction brownfield power units — Koderma (1.6 Gw), Raghunathpur (1.3 Gw), and Durgapur (0.8 Gw). These plants are due commissioning between 2027 and 2029.
 

“DVC invites EoI from discoms/industrial consumers/traders for purchase of available power from these projects with minimum quantum of 50 megawatt (Mw) from any project in ‘long-term or medium-term agreement mode on first come first serve basis,” said the notice.
 

Power-generating companies do not issue EoI for sale of power; it is usually states and/or power distribution companies (discoms) which issue tender for purchasing electricity. As DVC plans expansion, sector executives said the company was ensuring buyers before the generation capacity comes up.
 

Given the lack of LTAs in the power purchase market, wherein the financially troubled discoms avoid long term power purchase agreements, the move by DVC would be a litmus test of demand from states and discoms, said a senior executive of a leading power generating company.
 

“An EoI from a generator without a base tariff is a tricky indicator as there will be buyers but at what rate is the real question. The rate could land at around Rs 4 per unit but many discoms might be wary of it,’ said a sector expert.
 

In July last year, DVC chairman had said the company was investing Rs 30,000 crore on three new brownfield thermal power units. Its current power generation capacity stands at 6.75 Gw.
 

NTPC in 2021 had issued a power sale EoI for discoms and industries to purchase electricity but it was from its ‘spare generation capacity’.