Thermal power will continue to meet growing energy demand: Ind-Ra

Higher thermal power output will continue to meet the increasing electricity demand in the country, India Ratings said today in a report.

According to the study, the increase in power demand has been met through higher electricity generation (excluding from renewable sources), which increased 4.7 per cent year-on-year to 102.1 BUs (billion units), driven by a 6.6 per cent y-o-y increase in thermal power generation and 5.8 per cent y-o-y increase in nuclear power generation, while generation from hydro power declined 3.3 per cent y-o-y.

India Ratings and Research's (Ind-Ra) July edition of credit news digest on India's power sector highlights the trends in the power sector.

Thermal plant load factors (PLF) or capacity utilisation also improved y-o-y to 59.6 per cent in June 2018, it said, adding that the power supply was met through higher thermal, nuclear and renewable generation.

Peak demand deficit declined to 0.4 per cent in June 2018 from 1.5 per cent in the same month previous year.

The study said that in June 2018, short-term power prices on the Indian Energy Exchange increased to Rs 3.73/kWh from Rs 2.52/kWh in June 2017 on account of peak summer season, lower hydro generation and slower pickup in wind power generation in the southern and western states.

In June 2018, all India energy requirements increased 8.7 per cent y-o-y to 109.0 billion units, while the available energy rose 8.8 per cent to 108.4 BUs, leaving a power deficit of 0.5 per cent (June 2017: 0.5%).

Total renewable generation improved 6.8 per cent y-o-y to 9.3 BUs in May 2018, on account of improved generation from solar power, which increased to 3.3 BUs from 2.0 BUs in May 2017, while wind power generation declined to 4.4 BUs from 5.0 BUs.

The report said Coal India's monthly production increased 12.3 per cent to 44.9 million tonnes in June, aiding the growth in thermal generation.

However, it said the coal inventory at power stations remained lower, driven by an increase in coal demand owing to the peak summer season and lower hydro and wind generation.

The number of power stations with critical and supercritical levels declined to 15 for June 2018 from 25 in May 2018, it added.