Gradual uptick in the GDP and increased economic activities, backed by various government schemes such as Saubhagya and Udaya, are bound to increase the base demand of power in coming quarters, Ashwani Kumar, CEO, IL&FS Energy Development Company, tells Vikas Srivastava in an interview. Thermal power projects, operating at an efficient marginal cost and with high availability factor will become the most reliable source of power.
With renewable energy tariffs tumbling at every auction and discoms reneging on their existing PPAs, will thermal power get a leg up?
The thermal power sector is currently under stress. At the same time, the power exchanges are witnessing competitive tariffs on an average throughout the year. The tariff discovery of sub-Rs 3.00/kWh in recent bidding for solar and wind projects has attracted great interest from various discoms. However, when we look at the holistic scenario, the gradual uptick in the GDP, backed by increased industrial output and economic activities, and various schemes from the government, such as Saubhagya Scheme (that guarantees power to all households) and the Udaya Scheme (aimed at improving financial health of state discoms), will increase the base demand for power. At that point, we believe the thermal power projects, operating at an efficient marginal cost and with high availability factor, will again be in demand, as they are the most reliable source of large amount of power that India needs for its economic development. Read More…
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