CT Power Does Sell its Electricity Cheaper?

11 years, 4 months ago - November 09, 2012
CT Power Does Sell its Electricity Cheaper?
The power of "CT Power" Does cost less than that produced by the "Independent Power Producers' (IPP)? Not sure.

The CEB had already signed a contract with the developers of this plant in 2008. But four years later, the contract should be reviewed. "There are new conditions, including environmental, which have a financial impact , "revealed a senior official of the CEB. If the purchase price is not known, used technologies are efficient.

W ith the Pulverised Coal Technology, CT Power will produce a ton of coal, 20% more electricity than other PPIs , "says Swaley Kasenally, former Minister of Energy.

CT Power expects to generate 110 MW. Demand, she continues to grow with, in 2011, an increase of 2.5% for consumption of 2228 GWh.But one thing is certain: if the price paid by the CEB is less than the PPI, " it will not affect the price that consumers pay , "warns our source of CEB. The advantage, however, is that the CEB will partner CT Power at 26%. This is not the case for which the IPP CEB pays both the " fuel component " and the "fi xed load capacity "that finance the repayment of their debts.

PPIs are too expensive?

Not necessarily. In 2011, the CEB has purchased 1,339 GWh from IPP, and, for " about Rs 5 billion , "says part of this institution. Thus, the price, on average, a little over Rs 3 per KWh in 2011.

For Terragen in 2000, the prize " was Rs 2.57 / kWh , "says Cyril Mayer, Chief Executive Offi cer of Terra Group, majority partner of Terragen. However, according Swaley Kasenally, " only the cost of heavy oil used by the CEB to produce 1 KWh is around Rs 5 . " The central St. Louis, for example, produces electricity from heavy oil.

In addition, after a certain period, as stipulated in the Power Purchase Agreements (PPA), prices are revised downward. This is already the case where the price Terragen Ltd. " dropped on July 1 by a little less than 30% compared to prices in June , "says Cyril Mayer. Indeed, the contract with the CEB is "divided into two distinct periods: the Debt Debt Period and Post Period ", he says.

Added to this, the price paid by the CEB decreases when bagasse is used. " But it is minimal , "said part of the CEB.

Why are these contracts IPPCEB as they decried?

The first PPP government that signed in 1998. Which gave birth two years later, Powerhouse Belle-Vue, Terragen today. The contract was made on a "take or pay ". There is "the Standard Fee for the first 325 GWh products CEB agrees to buy , "said Cyril Mayer. The additional KWh choice.

A second type of contract are: the " two-part tariff . " According to this formula, the CEB is not obliged to buy the electricity produced. But must pay the fixed capacity charge. These are costs that are not unanimously because PPIs are therefore seen as not taking financial risks.Swaley Kasenally supports him, that " PPIs are all operational risks . " And " There are penalties in contracts when the producer out of network , "adds the frame to CEB. These contracts are often for a long time. For Cyril Mayer, renegotiation has no place. Especially that on returning to the stage " Debt Post, a very favorable price guaranteed to the CEB for the next decade . " 

 

Text by lexpress.mu

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