Indian power generation from conventional sources has continued the downtrend for the third-consecutive month, dampened by a subdued demand arising from the slowdown in industrial activity.
Tentative data provided by Power Ministry indicates that power output had attained an 8-month low total of 98.89 BU (Billion Units) during Oct’19. The volume had decreased 6% M-o-M from 105.19 BU in Sep’19, also recording its highest y-o-y decline for the fiscal at 13% from 113.51 BU in Oct’18.
The reduction in power output during Aug-Oct period has been unusual this year, which was earlier supported by elevated industrial activities post-monsoon. However, the recent economic slowdown had resulted in reduced power off-take from industrial firms, ultimately weakening the demand for power.
During the first 7 months of FY20 (Apr-Oct’19), Indian conventional power generation has reached 757.95 BU, up 1.15% Y-o-Y from 749.31 BU in Apr-Oct’18 period. Apparently, a growth rate of 5% was noted in the similar time-frame last fiscal.
Source-wise Power Generation:
Power generation from thermal sources (including coal, diesel and gas) remained almost flat over the month at 78.71 BU in Oct’19 as against 78.98 BU in Sep’19. However, the output was down 19% on the year from 97.59 BU in Oct’18.
The decline in thermal power generation was well supported by a remarkable growth in output from hydro and nuclear plants, which had increased 22% and 32% Y-o-Y respectively despite falling on the month during Oct’19.
| Conventional Sources | Generation Target for Oct’19 | Generation in Oct’19 | Generation in Sep’19 | Generation in Oct’18 |
| Thermal | 99.8 | 78.71 | 78.98 | 97.59 |
| Hydro* | 11.42 | 15.12 | 20.79 | 12.41 |
| Nuclear | 3.46 | 4.17 | 4.22 | 3.15 |
| Bhutan Imports | 0.78 | 0.90 | 1.20 | 0.36 |
| Total | 115.46 | 98.89 | 105.19 | 113.51 |
Source: Power Ministry
Quantity in Billion Units
*excludes generation from Hydro stations up to 25 MW
With power output from hydro sources set to recede following its peak season during monsoon, thermal power generation is expected to rebound in order to cater the residual demand and improve its utilization factor which had nearly dropped 22% Y-o-Y to 49.18 in Oct’19.
Consequently, coal-fired stations would be weighing in for comparatively higher power generation, wherein output had fallen nearly 2% Y-o-Y to 565.36 BU in the Apr-Oct’19 period.
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