Care also expects demand for imported thermal coal to normalize going forward as supply constraints of domestic coal improve over the next 12 months.
Care Ratings believe electricity generation in FY19 will grow between 6% and 7%. Successful implementation of electrification led by power for all is expected to drive demand for electricity.
Care also expects demand for imported thermal coal to normalize going forward as supply constraints of domestic coal improve over the next 12 months. However, overall demand for thermal coal would continue to remain between 135 million tonnes and 145 million tonnes.
Nevertheless, bringing down AT&C losses would be key to stabilising power sector in India. Achieving 15% AT&C on an all-India basis as stipulated under UDAY scheme would require improvement in revenue collection especially from domestic power consumers who have been electrified under the “SAUBHAGYA” Scheme.
Additionally, completion of measures like smart-metering should be expedited and implemented in a time-bound manner.
However, total electricity generated in the country clocked 1156.8 BU (billion unit) during April-Jan 19, reporting growth of 5.7% vs 5.3% in previous year. Renewable energy sources contributed 107.2 BU, and recorded a 25.2% growth over production in corresponding period of FY18.
PLF of thermal power plants monitored by CEA stood at 61.1% during 10- month period of FY19, an improvement over 59.3% for the corresponding period in FY18.
Solar and wind power accounted for 95% of capacity addition and remaining were hydro power projects. Wind energy capacity addition at 1.2 GW, has slowed down considerably post FY17 when it recorded 6 GW of capacity addition.
Care says: “AT&T losses (March 2019) at 19.8% vs a targeted 15% as envisaged under the UDAY scheme for Match 2019 is a concern. Few major “SAUBHAGYA” beneficiary states, including J&K, UP, MP, Bihar and Rajasthan continue to have AT&C losses over 25% and their discoms would have to expedite corrective measures.”
Source: economictimes.indiatimes
