Power capacity addition meagre in Q1; 45 Mw power added of 1820 Mw target

Capacity addition in the country’s power sector has been dull in financial year 2019-20.

Of the 1,820 Mw originally envisaged to be added in the first quarter, April-June, only 45 Mw was and entirely in thermal power, shows data from the Central Electricity Authority.

This addition was from private thermal producers. No capacity at all was added from nuclear or hydro electric sources. Or, in thermal power, from central or state entities.

For the full year, the official target is to add 12,186 Mw. In 2018-19, actual capacity addition was 5,922 Mw, against the target of 8,106 Mw. 

India Ratings says capacity ramp-up in coal-fired thermal power generation will be subdued in both FY20 and FY21. This is attributed to phasing out of 2,000 Mw at end-of-cycle thermal plants, the financial stress that stalks 85 per cent of private power plants, squeeze in availability of credit, drying of long-term PPAs and the slow pace of commissioning of new thermal power projects across sectors.