The Assam Electricity Regulatory Commission (AERC) has granted in-principle approval to the Assam Power Distribution Company Ltd. (APDCL) for the purchase of 500 MW of power from four different power-generating companies. The move aims to address Assam’s growing electricity demand, driven by rapid industrialization, urbanization, and rural electrification efforts.
Details of the Power Procurement Plan
APDCL will procure power from the following companies:
- DB Power Ltd
- Jindal India Thermal Power Ltd
- MB Power Madhya Pradesh Ltd
- Adani Power Ltd
The procurement will be executed in a staggered manner, with 200 MW being acquired from FY 2025-26, followed by an additional 300 MW from FY 2028-29, each for a 25-year period. The approved tariff rate stands at ₹5.79 per unit, determined through competitive bidding on the Discovery of Efficient Electricity Price (DEEP) portal.
Why Assam Needs More Power
Assam currently sources electricity from 36 different providers, including hydroelectric plants, central generating stations, and independent power producers. However, seasonal fluctuations in hydroelectric generation have led to supply inconsistencies, prompting the need for long-term coal-based power contracts.
According to the Union Ministry of Power’s Resource Adequacy Plan (2024-25 to 2034-35), Assam must contract additional coal capacities annually to meet its growing energy demands while fulfilling its Renewable Purchase Obligation (RPO).
AERC’s Decision and Future Outlook
After reviewing APDCL’s petition, AERC approved the purchase under Section 63 of the Electricity Act, 2003, ensuring reliable power supply for Assam’s expanding infrastructure. The decision is expected to stabilize electricity availability, benefiting industries, households, and rural electrification projects.
