Kerala not to plan hydel projects now

It’s not the customary ‘red flag’ but ‘green flag’ that has been planted at hydel project sites in Kerala. The Centre’s refusal to grant environmental clearance to the 150 MW Athirappilly project has prompted the state to overlook hydel projects in future. Two earlier proposals for big hydel projects, at Silent Valley and Pooyamkutty, remained non-starters because of denial of environmental clearance. 

Whatever be the fate of the Athirappilly project, the Kerala State Electricity Board does not seem to be in favour of big hydel projects in the state. The state government will focus on gas and coal-based projects. 

This will ensure that Kerala will lose the advantage of offering cheap power for industrial ventures. A network of hydel power stations had ensured that KSEB was able sell power to consumers at a very low price. Almost 60% of power generated in Kerala is from hydel projects. The rest comes from thermal energy plants of NTPC and BSES. The scenario is likely to change, says KSEB chairman Rajeev Sadanandan. The state cabinet has given the go-ahead for two LNG-based power projects —1,026 mw at Brahmapuram in Kochi and 2400 mw at Cheemeni in Kasargod. 

From 2500 MW, the peak demand is predicted to increase to nearly 4000 MW in another four years. The Cheemeni project will be based on coal and gas. “Since this will involve transportation cost to bring coal, Kerala consumers will no longer be able to enjoy cheap power,” Mr Sadanandan said. The power cost could jump from the current average of Rs 3.90 per unit to around Rs 5 per unit once the projects go on stream by 2014. 

The Rs 3,500-crore LNG import terminal of Petronet is on schedule and is slated to begin operations by 2012-end. The company has also planned a 1200 mw power project near the terminal from the cold energy released during the re-gasification of LNG.