Tight pollution norms to hit power generation, harden prices in 2020: Study

Scenario to benefit power exchanges, merchant producers

Failure to meet the revised pollution norms set for power projects located in critically polluted areas has cast fears of shortfall in generation.

A sectoral report on power by Axis Capital sees 2020 as the year of large scale disruptions, leading to either partial or full shutdowns of the impacted power plants and levy of severe penalties.

“We expect supply disruptions to push power prices up. It will benefit volume growth for power exchanges and producers like JSW (Energy) and Torrent (Power) with merchant capacities. But, there will be lesser impact on NTPC as most of the FGD (Flue Gas