India: Conventional power generation up by 19% M-o-M in May’20

Power generation from conventional sources that nosedived owing to lock-down restrictions has demonstrated a significant uptick during the month.

Tentative data provided by power ministry indicates that the output increased 19% M-o-M to 96.27 BU (Billion Units) as against 81.05 BU in Apr’20, as the country observed a late surge in electricity consumption due to summer peaking at most places, which was also supported by partial resumption in industrial activities.

However, the volume witnessed a significant dip from pre-lockdown levels, as it fell 18% Y-o-Y from 117.05 BU in May’19.

Thermal plants seek further assistance for revival:

Although, power generation from thermal power units recorded a remarkable growth on the monthly basis, yet it was below par with the target set for May’20. Total output grew 16% M-o-M to 77.68 MU, but was down 21% Y-o-Y from 98.84 BU in May’19.

Source: Power Minisry
Quantity in BU

Given a relatively better performance especially by the hydro and nuclear plants that had attain their monthly target for May’20, the thermal plants require additional demand push which would subsequently boost coal burn at the power stations.

This holds importance as overall coal consumption is linked to the output from coal-fired plants which constitute near-about 70% of the total electricity generation. At present, with an ample availability of coal stock, the power producers were seen shying away from taking additional coal supplies.

Encouraging signs have been noticed in electricity consumption trend for Jun’20, wherein daily average demand has risen 10% to 3351.81 MU in the first 11 days comparable to the levels assessed in the month-ago period.