A dispute over the procurement of 150 MW for 25 years has led to the suspension and dismissal of Punjab Power Department officials

Although the government has remained silent on Sinha’s transfer, Harjit Singh’s termination order cited the “higher cost of fuel” at state-run plants compared to private thermal units.

The power will be purchased at Rs 5.13 to Rs 5.14 per unit, while solar power is available at Rs 3 per unit, the officials said on condition of anonymity.

Two agreements of 150 MW capacity (100 and 50 MW each) were signed in September, but the government did not give its approval “as these agreements, approved by the Engineers Committee and PSPCL Board, were priced at Rs 5.13 to Rs 5.14 per unit, which is much higher than Rs 3 per unit of solar power,” officials said.

But the technocrats called it “comparing apples with oranges.”

A senior technocrat said that the two agreements are not expensive and cannot be compared to solar energy, because they are hybrid energy – solar energy during the day, wind energy at night, and batteries 24 x 7.

“Solar energy is only available during the day. It is not available at night. It is also subject to sunny days. That is why the agreements were for hybrid energy so that it could be supplied 24 hours a day, 7 days a week. Companies were obligated to supply 70 percent of the energy every day, regardless of weather conditions. Solar energy is weak. It cannot sustain 24 x 7 days a week. Comparing the price per unit of solar energy and hybrid energy is like comparing apples to oranges. Incorrect to claim that solar energy is cheaper because solar energy is available “Only during the day, while the peak power load occurs during the four hours in the evening, when this power is not available, so the company was supplying us with wind power or batteries.”

He also said that there is a provision for a penalty equivalent to one and a half times the price of electricity, and that failure to meet the minimum annual quota will result in a penalty of three times the annual price.

The technocrat said that these agreements were concluded through a central government agency and the Indian Solar Energy Corporation had issued these tenders. The government was given 90 days to reach an agreement. A committee of six senior engineers, two senior account department officers at engineer level, long-term power procurement committee and PSPCL Board of Directors (BoD) approved the deals.

Before the agreements were sent to the Punjab Electricity Regulatory Commission for final approval, the government refrained from implementing them on the pretext that solar energy is cheaper. “After approving the minutes, the board also agreed to submit the required petition (for approval) before the Punjab State Electricity Regulatory Commission (PSERC). The board is empowered to take these decisions, but the government did not allow the technocrats to file the petition,” the senior technocrat said.

DOE engineers protest suspension and termination orders. They organized marches at the gates of Ropar and Lehra Mohabbat thermal stations.

It is known that the power demand in Punjab is growing by 800 MW every year, but the government has failed to establish new sources of power generation. With no agreements signed to obtain additional power, the state may face a power shortage.

But Energy Minister Sanjeev Arora was not available for comment.