DVC To Invest 30 Cr More To Increase Capacity

Damodar Valley Corporation (DVC) has set out plans to increase its capital expenditure of 28,000 to 30,000 crore in the next nine years in order to increase its thermal capacity from current 6,750 MW to 10,470 MW.

Apart from thermal power, DVC is also planning to build an array that includes floating solar energy projects as well as ground-mounted solar power projects pumps storage facilities, battery storage infrastructure for electric vehicles along with green hydrogen developments that will form JVs the NTPC, SJVNL and NHPC. Renewable projects can bring in investments of as much as 2,700 crore over 5 to 6 times, DVC chairman RN Singh stated.

Union minister for power RK Singh has set up an ambitious goal to ramp the DVC's capacity installed up to a range of 16,000-17,000 MW over between 8-9 years, in the hope of increasing demand for power that India is now experiencing after the Covid. The expansion of capacity is planned on the basis of the increasing demand for power , with the average peak demand rising by 15 percent year-on year (y-o-y) for FY22. The power demand is estimated to rise by 10% per year and DVC is expected to meet the increasing demand, specifically for supply in areas such as Delhi and Punjab which have seen peak demand been rising. Delhi reached the peak demand of 7,000 MW in June of last year's fiscal, while Punjab 10,000 MW was reached in May of last fiscal. Demand for contract power from industries such as SAIL as well as Indian Railway is also set to increase. DVC has begun distributing energy at 11kV to smaller businesses from 33 kV. It was the only voltage it previously distributed, increasing power demand.

The second largest power generator in the country serving telecoms and industrial customers currently was looking to tap into the domestic market with its open access program. So the need for additional generation source has been proposed, Singh said adding DVC generated the highest number of units, 40775 million units during FY22. "While thermal generation would push the DVC's capacity over 10,000 MWof renewable energy, it is estimated that renewables could increase the capacity by 3,650 MW at minimum, with the majority of capacity growth being from floating solar projects as well as storage facilities for pumping," Singh said.

The thermal projects are brownfield expansions that would add another 2x660 MW integrated into the Raghunathpur unit before FY27. It would need an capital expenditure of around 9,089 crore. Another 800 MW unit could be built within the Durgapur Energy Station by the end of FY29. This would require an investment of 6000 crore. There will be two units of each 800 MW on Koderma Power Station. The financing of the projects will be arranged using a 70-30 debt: equity ratio, leading to an infusion of approximately $1,000 crore equity capital each year, spread over 9-10 years.

For renewable projects, the DVC's equity requirement will be around Rs 270 crore per annum because these projects would be set to come from JVs. DVC is forming JVs along that include NTPC and SJVNL for a total of 2,030 MW floating solar capacity in FY25 across its barrages and dams, as well as an joint venture with NHPC for the storage of a 1,500 MW pump project in 2028 at Lagu Pahar in Jharkhand.

DVC has been granted an coal block Tubed coal mine at Latehar located in Jharkhand in Jharkhand. The mine will reach its maximum capacity of 6 million tonnes (MT) per year within five years of mining operations begin. DVC has already received approval from the government for the acquisition of land.