India: Conventional Power Generation Down by 15% M-o-M in Apr’20

India’s power generation from conventional sources continued its fall in April amid COVID-19 invoked demand contraction.

Although during the month, some states had eased lock-down restrictions resulting in resumption of industrial activities, the rise in electricity consumption was negated by comparatively cooler climate. This further scrapped the output surge anticipated by the power generating firms.

Tentative data provided by power ministry shows that generation from conventional sources decreased by 15% M-o-M to 81.54 BU (billion Units) in Apr’20 compared with 96.06 BU in Mar’20. Against last year’s April output of 109.26 BU, the same is down by 25% on Y-o-Y basis.

Source-wise generation:

During Apr’20, the increased usage of hydro and nuclear power further affected utilization of thermal plants that were already dealing with acute shortage of power demand.

The generation from thermal plants dropped by 18% M-o-M to 67.64 BU while operating at a meagre PLF rate of 42.4%. On the other hand, growth of 6% and 2% was recorded in power output from hydro and nuclear plants.

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

Low coal-fired generation derails CIL growth plans:

CIL was hoping for a revival in power producers’ appetite for coal lifting with an improvement in power demand. However, the lingering effect of lock-down resulted in a decline in coal-fired generation by 21% M-o-M to 59.8 BU in Apr’20. This further dampened the requirement of immediate coal dispatch.

In the ongoing month, although market participants anticipate rise in power demand from the present levels due to surge in temperature. Comparatively tepid demand, piled-up coal inventory and upcoming monsoon projects a gloomy outlook for CIL going forward.