For The First Time In 10 Years, Power Plants Show Load Factor Rising, Here Is Why


For The First Time In 10 Years, Power Plants Show Load Factor Rising, Here Is Why

Power plants across the country have shown that load factor is rising for the first time in 10 years. The uptrend is evident across Central, state and private generation capacities. The increased demand is a welcome thing. Notably, this has been on a steady downward slide since 2007-08 — when the PLF of coal and lignite based power plants peaked at 78.5 per cent, according to Indian Express report. The Plant Load Factor (PLF) is the total energy produced corresponding to scheduled generation during the period, expressed as a percentage of energy sent out vis-à-vis the plant’s installed capacity — has topped the 65 per cent mark this fiscal (April-October data) for the first time since 2013-14. A high PLF means a higher output and a more efficient plant.

It has been learnt that the primary reason behind this improvement is the power system linking the rest of the country to the southern region, which was facing power shortages due to transmission bottlenecks for a length of time and had been strengthened late last year, is seeing free flow of power on a round-the-clock basis now. An improvement in restocking activity in the quarter after the Goods and Services Tax rollout is also seen as having an impact — something that was reflected in the latest growth numbers as well. Read More…

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