Budget 2020-21 wishlist: Key developments and challenges in power sector

The larger share of non-fossil fuel generation poses new challenges to state utilities

Key developments 

The electricity industry is in a strong position. The generation capacity expanded (4.2% growth over past year) ahead of demand (1.1%) which places it well to meet the emerging needs of recently connected households and electrification of transport.

Non-fossil fuel generation has grown in share from 21.5% to 23.9% during the year making a credible and continued progress towards our climate change commitments. 

 

The capacity utilisation of thermal power plants (PLF) averaged 57.5% dipping to low 50s in the last few months with softening demand.