India: Conventional Power Generation Up 11% Y-o-Y in Feb’20

Power generation from conventional sources has registered its largest Y-o-Y growth for the FY20 owing to increase in demand on account of early onset of summer. Output in the month of Feb’20 was marked 11% higher on the year at 101.04 BU as against 91.42 BU in Feb’19.

A noticeable rise in daily output was also noted on the monthly basis, as it grew to 3.48 BU/day in Feb’20 compared with 3.32 BU/day in Jan’20, although the total volume depicted a fall of 2% M-o-M.

Strong demand from the agricultural sector in the southern as well the western states had also lifted the electricity requirement in the regions.

A region-wise break-up showed that power generation in Western region was well above the monthly target, as it grew 16% on the year to 41.91 BU in Feb’20. Output in Southern region increased 9% on the year to 21.48 BU in Feb’20.

Source-wise Power Generation: Output from various sources had recorded a hefty rise Y-o-Y, despite going down on the monthly basis during Feb’20.

(a) Thermal power generation (including contribution from coal, gas and diesel power plants) recorded at 89.43 BU, increased 10% Y-o-Y from 81.4 BU but was down 2% M-o-M from 90.8 BU in Jan’20.

(b) Generation from hydro sources extended its rise Y-o-Y, which despite registering its lowest total for FY20 had attained the monthly target set for Feb’20. During the first 11 months of FY20, total output from hydro sources has increased 16% Y-o-Y to 146.67 BU.

(c) Power output from nuclear sources were marked 8% higher on the year at 3.1 BU in Feb’20. Remaining volume was imported from Bhutan which is also a part of the conventional power generation.

Source: Power Ministry
Quantity in BU
*excludes generation from Hydro stations up to 25 MW

Coal expected to remain a dominant force in Indian power sector:

FY20 has not been a great year for coal based power plants, where cumulative generation have declined 2% Y-o-Y to 885.78 BU in the first 11 months while operating at a PLF (Plant Load Factor) of 56.33%. This comes on the back of increasing renewable energy generation and softening of electricity demand.

Tentative data provided by Power Ministry indicate that power output from renewable sources have increased 8% Y-o-Y to 115.77 BU in Apr’19-Jan’20 period.

However, Minister of State for Power, Mr. R K Singh has informed that the PLF of coal based plants is likely to be 56.5% in 2021-22, which was noted close to the level seen at present.

The minister emphasized that coal-fired plants’ lower PLF was affected by climate/weather conditions, growth of electricity demand in various sectors and generation from various other sources like hydro, nuclear, gas etc.