India Yearly Power Generating Capacity Addition

India: Conventional Power Sources Witness Slowest Capacity Addition in 5 Years

Indian convention power sources (thermal, hydro and nuclear) have recorded lowest capacity addition in the past 5 years during FY19.

Altogether these sources have added installed capacity of 5922 MW in FY19, which was 38% lower on the year from 9505 MW in FY18.

Capacity addition in thermal sector totaled 5782 MW in FY19, down 34% Y-o-Y from 8710 MW in FY18. Addition in hydro sources decreased 82% Y-o-Y to 140 MW during the year.

No capacity has been added in the nuclear power sector for the past two fiscals, wherein Unit no-2 of Kudankulam nuclear plant was latest addition in the list which was commissioned back in FY17.

Data provided by CEA indicate that installed capacity of conventional plants stood 278458.6 MW at the end of FY19.

Effect on Coal-fired Generation:

India is seen maintaining its reliance on coal-fired power, which accounts for majority of its electricity generation.

Of the total annual generation target of 1330 BU for conventional sources in FY20, coal fired plants have been assigned with the task of producing 1058.79 BU, which is almost 80% of the annual demand.

However, in line with the rise in power demand, there has been inadequate capacity addition in the coal fired plants.

Coal-fired power stations had installed 5712 MW of new capacities during FY19, but a notable quantity of 2179 MW was also retired during the period. This implies that the net capacity addition to the coal fired plants was 3533 MW.

The utilisation factor of coal fired units fared better given there was meagre capacity addition, as was the case in FY19 when PLF of coal-fired plants had up ticked to 60.91 as against 59.72 in FY18.

But in case of sudden outage of a power plant, it may also affect the performance of remaining units as they will have to significantly increase coal burning ultimately resulting in drastic fall in coal stock levels.

In order to cater the rising power demand, CIL has envisaged to supply 530 MnT coal to the power sector in FY20.


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