The AMC’s power bill has steadily increased over the last decade, rising from Rs 93 crore in 2011 to as much as Rs 283 crore in 2020-21. So, is the civic body utilising alternative energy sources in order to reduce the rapidly rising power bills, or is it not? It is, indeed. So, how come its power bill hasn’t been reduced? It turns out that, despite having implemented a slew of energy-efficiency measures, such as rooftop solar installations, LED street lighting, and even producing some of its own power in plants in Kutch, money has been leaking elsewhere. A large portion of it will go to civic contractors.
Although the AMC has approved energy efficiency projects, contractors are reaping the benefits. For example, the AMC approved a tender for the conversion of streetlights on CG Road and other locations to energy-efficient LEDs. The tenders for these have some unusual terms and conditions, such as the AMC paying 70% of the saved amount to the contracted agency.
As a result, the AMC does not benefit from the cost savings, and its light bill remains unchanged. Contractors, for their part, have discovered ways to reduce consumption while reaping the benefits of savings. They keep the majority of streetlights turned off at night, which reduces power consumption and increases savings and earnings for them.
It’s no shocking that AMC’s electricity bill has risen by Rs 190 crore in the last decade, despite the fact that it has installed alternative energy sources such as solar and other energy efficiency projects. In fact, over the last five years, it has spent up to Rs 50 crore on energy efficiency projects. It has installed solar panels on the roofs of all of its buildings, bus stations, and stadiums, as well as a wind power project in Nakhtrana, Kutch, which became operational in 2016.
The corporation first implemented energy-saving measures in 2011 by establishing an energy efficiency cell with the goal of lowering energy bills. However, a decade later, the power bill is still rising, rising to Rs 283 crore in 2020-21 from Rs 93 crore in 2010-11. AMC has spent over Rs 50 crore since then on wind and solar projects, as well as converting all streetlights to LED.
It consumed 30 crore units in 2015-16, which will increase to 32.60 crore units in 2020-21.
The civic body stated in its budget for 2021-22 that it used an average of 32.60 crore units per year. It claimed that the conversion of streetlights to LED saved 2.6 crore units, resulting in a Rs 15.50 crore reduction in energy bills. Other factors such as exemption from electricity duty, refund, tariff, and demand-supply management also contributed to a 4.5 MW reduction in power demand, resulting in a Rs 20.64 crore savings.
According to AMC, the 600 KW solar rooftop panels installed on its various buildings produced 14.50 lakh units.
Furthermore, its 4.2 MW wind power project in Nakhtrana, Kutch, has produced 4.53 crore electricity units up to October 2020, bringing in Rs 29.50 crore. Another 4.2 MW plant installed in Nakhtrana in 2017 produced 3.27 crore units in three years, generating Rs 22.94 crore in revenue.
Overall, the claim of having saved a total of Rs 101.88 crore from all of its energy efficiency projects is meaningless given that AMC’s power bill has risen rapidly over the last decade. It would be wise to have a third-party audit performed to identify any gaps.
Rajshri Kesri, a Congress corporator, said the AMC’s power bill-cutting measures had failed miserably. They have spent crores on a variety of projects, but a vigilance investigation is needed to determine where the money was actually spent.
Chairman of the Roads and Buildings Committee Mahadev Desai stated that he did not have the data and will inquire as to why the power bill has not been reduced despite all of the measures.