Rise in short-term power prices due to demand-supply mismatch of coal: India Ratings


Rise in short-term power prices due to demand-supply mismatch of coal: India Ratings

Economic Times reported that short term power prices on the exchange rose to INR 4.02 per unit in March 2018 from INR 3.23 per unit in February due to increase in seasonal demand, inadequate availability of coal with the thermal generators and decline in nuclear and hydro power generation, according to India Ratings and Research, a Fitch Group-owned credit rating agency.

In March 2018, all-India energy requirement increased 6.6 per cent to 105.2 billion units (BUs), while available energy increased 6.1 per cent to 104.4 Bus as compared to the corresponding month last year, leaving a power deficit of 0.8 per cent in March 2018 as against 0.4 per cent in March 2017.

According to the report, the increase in demand was met through improved generation from coal-based thermal power plants which was up 5.3 per cent in March 2018. All India electricity generation excluding renewable sources grew 3.1 per cent to 105.8 BUs in March 2018. “During FY18, electricity generation grew 4.0 per cent. The increase in coal-based thermal power was accompanied by an improvement in the thermal plant load factor (PLF) to 65.3 per cent in March 2018 from 63.1 per cent in March 2017,” it said. Read More

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