Private thermal power plant utilisation rises in May on election demand growth

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Updated: June 7, 2019 5:42:00 AM

Conventional power plants (coal, gas, nuclear and hydro) generated 111.1 billion units (BU), and private power plants seemed to have gained the most with their utilisation levels (PLF) rising by 4.8 percentage points to 61.1%.

Private thermal power plant, Conventional power plants, average thermal PLF, Tata Power, Adani Power, Adani Power, renewable energyConventional power plants (coal, gas, nuclear and hydro) generated 111.1 billion units (BU), and private power plants seemed to have gained the most with their utilisation levels (PLF) rising by 4.8 percentage points to 61.1%.

Electricity produced by conventional power plants in May recorded a rise of 5.1% year-on-year (y-o-y), thanks to a surge in demand stemming from poll-related activities in the scorching summer. Conventional power plants (coal, gas, nuclear and hydro) generated 111.1 billion units (BU), and private power plants seemed to have gained the most with their utilisation levels (PLF) rising by 4.8 percentage points to 61.1%. The overall average thermal PLF was 63.2%.

Since electricity cannot be stored, generation is the most robust indicator of consumption trends. Rising utilisation rates is a good news for private power players after a dismal FY19, when their average PLF remained muted at 54.9%, keeping debt-servicing capabilities suppressed.

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The private coal-based power generation sector has been under stress for a long time due to lack of adequate demand and coal supply issues. The major units where PLFs increased the most (y-o-y) are: Reliance Power’s 1,200 MW Rosa units, Jindal Power’s 1,000 MW Tamnar, Essar Power’s 1,200 MW Mahan, KSK Energy’s 1,200 MW Mahanadi plant. Imported coal-based units of Tata Power and Adani Power, located in Mundra, also saw their PLFs significantly rising in May.

NTPC’s coal-based PLF for May was 74%, falling nearly eight percentage points y-o-y, mainly dragged down by low utilisation of its Solapur and Kudgi units. Generation data from renewable energy, which has recently been clocking impressive growth levels, are not available yet.

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