AP-Genco plans to set up a Small Modular Reactor to diversify its energy mix

To make a sustained contribution to the State’s power requirement with as much less carbon footprint as possible, the AP-Genco aims at diversifying its energy mix, which largely comprises thermal and hydro.

The idea is to have a sizeable nuclear energy component in it by setting up a Small Modular Reactor (SMR). However, it is at a nascent stage as cost and multiple other factors, including regulatory issues, have to be considered thoroughly before taking a concrete step.

Besides, the AP-Genco has laid renewed thrust on completing the slew of Pumped Storage Hydropower Plants (PSHP) and maintaining the efficiency of Thermal Power Plants (TPPs), which are crucial for maintaining the base load, says AP-Genco Managing Director S. Nagalakshmi.

She notes that the coal grade slippages that affect Plant Load Factor (PLF) are common and are being effectively tackled by blending domestic coal with imported coal (which has high gross calorific value) and washed coal also.

In an exclusive interview to The Hindu here, Ms. Nagalakshmi said the SMR was agreed to in-principle, but it could not be rushed through as many things were to be examined in detail, while pointing out that nobody in the country had a working SMR as on date.

As regards the PSHP, she said, as AP-Genco was currently contributing 45-55% of the grid requirement and it had to be maintained, the PSHPs were being constructed from a long-term perspective as a sustainable storage option, as a typical PSHP would last for at least 50 years.

Ms. Nagalakshmi said Battery Energy Storage Systems (BESS) were being explored in small quantities for the time being, keeping the cost factor in view. If the BESS were to be done on a large-scale, the AP-Genco had to tread cautiously, given the intense competition from private players.

To get the BESS going, a financial model, wherein power could be supplied at competitive rates, had to be worked out, she observed.

Further, the AP-Genco MD said there was a plan to set up a TPP in Srikakulam district, for which a joint venture with Coal India Limited was conceived, and it was still technically on-board. Ultimately, AP-Genco might finalise Srikakulam or prefer a pit-head power plant at Talcher in Odisha. A decision in this regard mainly depends on coal cost and inter-State transportation charges.

AP-Genco currently had coal linkages with Mahanadi Coalfields Limited, Singareni Colleries Company Limited and Eastern Coalfields Limited, she added.