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Indian power sector goes in reverse gear with more fuel but less demand

There is enough coal, and power generation capacity but no surplus demand for power

Shreya Jai  |  New Delhi 

coal, coal India,

Just three years back, producers used to cry foul over the scarce availability of fuel. But, while supply is abundant, demand has gone dry.

In July 2015, the (PLF) or per unit output of the plants was down to 58.36 per cent — a decade’s low. The situation improved slightly with PLF climbing above 60 per cent at the close of 2015 but it has worsened again. For the April-December 2016, PLF of the stations has slid back to 59.64 per cent.

In simple terms it translates to — there is enough coal, there is generation capacity but there is no demand for The sick status of the discoms is now hurting the whole supply chain.

Gencos rue the fact that demand is not picking up and as their plants are running at low capacity, they can’t help but source less coal, said an executive requesting anonymity. “In medium term, this is likely to continue, I fear,” said the executive. availability at plants sites is at a record high of +20 days.

plants account for about 70 per cent of the country’s installed capacity of 3.10 lakh MW. While the government claims that several efficiency measures have led to demand not increasing. 

The NDA government has scaled up plan for production for India Limited to 1 billion tonne by 2019. The production target for CIL is 615 million tonne this financial year. During April to August 2016, the production by CIL & its subsidiaries was 194 million tonne. 

The government, however, expects PLF of plants to come down further at around 55 per cent in five years from the current 69 per cent. “If renewable capacity comes up as envisaged, I think we are comfortable with a PLF around 50 per cent,” said a senior ministry official.

In its draft National Electricity Plan, the (CEA) has envisaged peak demand to be half of the installed generation capacity by 2022.

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Indian power sector goes in reverse gear with more fuel but less demand

There is enough coal, and power generation capacity but no surplus demand for power

There is enough coal, and power generation capacity but no surplus demand for power
Just three years back, producers used to cry foul over the scarce availability of fuel. But, while supply is abundant, demand has gone dry.

In July 2015, the (PLF) or per unit output of the plants was down to 58.36 per cent — a decade’s low. The situation improved slightly with PLF climbing above 60 per cent at the close of 2015 but it has worsened again. For the April-December 2016, PLF of the stations has slid back to 59.64 per cent.

In simple terms it translates to — there is enough coal, there is generation capacity but there is no demand for The sick status of the discoms is now hurting the whole supply chain.

Gencos rue the fact that demand is not picking up and as their plants are running at low capacity, they can’t help but source less coal, said an executive requesting anonymity. “In medium term, this is likely to continue, I fear,” said the executive. availability at plants sites is at a record high of +20 days.

plants account for about 70 per cent of the country’s installed capacity of 3.10 lakh MW. While the government claims that several efficiency measures have led to demand not increasing. 

The NDA government has scaled up plan for production for India Limited to 1 billion tonne by 2019. The production target for CIL is 615 million tonne this financial year. During April to August 2016, the production by CIL & its subsidiaries was 194 million tonne. 

The government, however, expects PLF of plants to come down further at around 55 per cent in five years from the current 69 per cent. “If renewable capacity comes up as envisaged, I think we are comfortable with a PLF around 50 per cent,” said a senior ministry official.

In its draft National Electricity Plan, the (CEA) has envisaged peak demand to be half of the installed generation capacity by 2022.

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Business Standard
177 22

Indian power sector goes in reverse gear with more fuel but less demand

There is enough coal, and power generation capacity but no surplus demand for power

Just three years back, producers used to cry foul over the scarce availability of fuel. But, while supply is abundant, demand has gone dry.

In July 2015, the (PLF) or per unit output of the plants was down to 58.36 per cent — a decade’s low. The situation improved slightly with PLF climbing above 60 per cent at the close of 2015 but it has worsened again. For the April-December 2016, PLF of the stations has slid back to 59.64 per cent.

In simple terms it translates to — there is enough coal, there is generation capacity but there is no demand for The sick status of the discoms is now hurting the whole supply chain.

Gencos rue the fact that demand is not picking up and as their plants are running at low capacity, they can’t help but source less coal, said an executive requesting anonymity. “In medium term, this is likely to continue, I fear,” said the executive. availability at plants sites is at a record high of +20 days.

plants account for about 70 per cent of the country’s installed capacity of 3.10 lakh MW. While the government claims that several efficiency measures have led to demand not increasing. 

The NDA government has scaled up plan for production for India Limited to 1 billion tonne by 2019. The production target for CIL is 615 million tonne this financial year. During April to August 2016, the production by CIL & its subsidiaries was 194 million tonne. 

The government, however, expects PLF of plants to come down further at around 55 per cent in five years from the current 69 per cent. “If renewable capacity comes up as envisaged, I think we are comfortable with a PLF around 50 per cent,” said a senior ministry official.

In its draft National Electricity Plan, the (CEA) has envisaged peak demand to be half of the installed generation capacity by 2022.

image
Business Standard
177 22