Power output from conventional sources has registered an upsurge during Dec ’20 after falling for the past two months, driven by higher electricity consumption noted across various states of the country.
Tentative data provided by power ministry showed that output had increased 9% m-o-m to 103.66 BU (Billion Units) in Dec ’20 compared with 95.2 BU in Nov ’20. The volume was also marked 5% higher on the year from 99.1 BU in Dec ’19.
Although electricity demand slowed down due to early onset of winters, all-India power consumption recorded a rise of 5% y-o-y to 101.31 BU in Dec ’20, eventually exceeding the growth rate of 4% marked in Nov ’20.
However, despite the late revival post lock-down, overall power generation in the first 9 months of FY ’21 (Apr-Dec ’20) has fallen 5% y-o-y to 905.89 BU against 950.73 BU in the year-ago period, primarily due to the COVID-19 led demand contraction.
Source-wise generation:
Lower hydro-power availability post-monsoon helped thermal power plants to run efficiently by not only generating more electricity, but also attaining superior plant load factor (PLF) of 57.06% in Dec ’20 against 54.54% in Dec ’19.
Output from thermal plants increased 11% m-o-m to 91.37 BU in Dec ’20, which also grew 6% y-o-y from 86.33 BU in Dec ’19. On the other hand, hydro-power output fell both on the monthly and yearly basis, despite recording higher electricity than the monthly target.
Potential rise in coal demand:
After a brief spell of stagnation in industrial activity during the festive period, and a potential step-down in production following the completion of pent-up demand, performance of core sector is expected to improve which would necessitate higher electricity.
Moreover, arrival of summer season would also boost electricity requirement from the residential sector.
Notably, in the wake of increased coal-fired power output by 12% m-o-m to 85.47 BU in Dec ’20, coal inventories at plants have come down to 36.88 mn t as on 7 Jan ’21 against 38.06 mn t on 7 Dec ’20, thereby easing off part load of the plant operators which had earlier regulated lifting of coal.
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