India: Conventional power generation up 7% m-o-m in Sep ’20

Power generation from conventional sources registered a growth of 7% m-o-m to 109.84 BU in Sep ’20 against 103.13 BU in Aug ’20, tentative data provided by power ministry showed.

Moreover, outpacing levels of last financial year, the output rose 4% from 105.19 BU in Sep ’19 thus recording a y-o-y increase for the first time in FY ’20.

The country has witnessed a remarkable slump in power demand due to muted industrial and commercial activities amid sporadic lock-downs which were imposed to contain the COVID-19 outbreak. Consequently, total generation in the first half-year period (Apr-Sep ’20) has fallen 9% y-o-y to 598.94 BU compared with 659.06 BU in Apr-Sep ’19.

However, relaxation in lock-down has sparked revival in electricity demand lately due to the increase in economic activities.

Source-wise generation:

Thermal power generation attained a 7-month high total of 85.58 BU in Sep ’20, due to lower hydro power availability post monsoon. Besides, the output was marked 8% higher on the year from 78.98 BU in Sep ’19.

Generation from hydro-power sources despite fetching higher output than the schedule program was recorded 9% lower on the year at 18.94 BU in Sep ’20.

Quantity in Billion Units

Expected spurt in coal demand:

Enhanced performance from coal-fired plants as they clocked their highest power output of 78.91 BU for the fiscal during Sep ’20, has negatively impacted the coal inventories which have now started to come down at a faster rate.

Data provided by CEA indicates that coal stock at plants decreased 7% m-o-m to 34 mn t as on 5 Oct ’20, equivalent to 19 days consumption, has fallen below the CEA stipulated limit of 22 days.

Given the continuous growth in industrial activity, it is expected that the power plants would seek higher coal supplies to cater their demand.