NTPC, Power Grid, NHPC, other power stocks rise up to 7% in trade today

Power stocks advanced up to 7.1 per cent in Wednesday's (January 15, 2025) trade. Around 11:25 AM, individually on BSE, NTPC shares were up 3.39 per cent, Power Grid shares were up 4.22 per cent, NHPC was up 2.3 per cent, Adani Green Energy was up 3.27 per cent, Adani Power was up 2.28 per cent and Tata Power was up 3.42 per cent.

 

Similarly, JSW Energy was up 2.2 per cent, Adani Energy Solutions was up 1.55 per cent, Torrent Power was up 1.98 per cent, SJVN was up 2.5 per cent, NLC India was up 0.74 per cent, CESC was up 1.14 per cent and Reliance Power was up 1.41 per cent. 

 

As per reports on Monday, India's renewable energy installed capacity increased by 15.84 per cent to 209.44 GW by December 2024 from 180.80 GW a year ago, marking a record expansion.

 

The total capacity added during 2024 more than doubled to 28.64 GW from 13.05 GW added a year ago. In 2024, solar power spearheaded this growth with addition of 24.54 GW, registering 33.47 per cent year-on-year (Y-o-Y) rise in its cumulative installed capacity to 97.86 GW in 2024, the statement by Ministry of New & Renewable Energy (MNRE) said.

 

Wind power addition was 3.42 GW in 2024, taking the total wind capacity to 48.16 GW, a growth of 7.64 per cent from 2023. 

 

Meanwhile, in Q3, power utilities are likely to see moderate growth. As per Business Standard analysis, generation is expected to rise 3 percent Y-o-Y on lower cooling demand and high base, to 429 billion units (BU).

 

Peak demand is likely to be steady at 224GW in Q3FY25, a 10 per cent decline from the record highs of 250GW in May 2024. Coal-based generation is also estimated to be steady at 319BU, hydro generation surged by 27 per cent to 34BU. Gas-based generation may fall by 20 per cent Y-o-Y to 5.4BU. Renewable generation likely to rise 14 per cent Y-o-Y to 47BU. Year-to-date, generation is expected to increased 5 per cent Y-o-Y to 1,387BU.

 

Global coal prices were down due to oversupply and weak demand in China. The e-auction premium was in the range of 65-70 per cent in Q3FY25. Trading volume is expected to grow 16 per cent Y-o-Y to 30BU in Q3FY25, which may contribute to lower prices on exchanges. In the day ahead market (DAM), average prices for Q3FY25 are likely at Rs 3.71 per unit, a 26 per cent Y-o-Y decline.