The continued decline in power demand in the country is affecting the use of thermal capacity, India Ratings and Research (Ind-Ra) said in a report.
The report highlights trends in the power sector, with a focus on capacity addition, generation, transmission, commercial power, deficit, regulatory changes and recent rating actions by Ind-Ra.
All-India energy demand decreased by 14.9% year-on-year to 102.7 billion units in May 2020, while energy supply decreased by 14.9%, leaving the energy deficit at 0.5% compared to 0.4% in May 2019.
The rating agency said that the continued decline in all-India power demand has had an impact on the thermal plant load factor (PLF).
The May 2020 edition of Ind-Ra 's credit news digest on the Indian power sector has been published.
Power demand decreased in May 2020 in the context of the COVID-19 lockdown due to the decline in commercial and industrial demand from major manufacturing countries such as Maharashtra (down 11.3 per cent), Gujarat (down 13.5 per cent) and Tamil Nadu (down 15.1 per cent).
Power demand decreased in May 2020 (down 14.9 per cent), April 2020 (down 22.3 per cent) due to the gradual lifting of the lockdown for certain economic activities, an increase in domestic consumption during the peak summer season and an increase in agricultural use due to the start of the sowing season, according to the report.
With a decrease in demand, electricity generation (excluding renewables) also decreased by 17.7 per cent to 96.3 billion units in May 2020 compared to a decrease of 25.4 per cent in April 2020, with thermal generation declining by 21.4 per cent compared to a decrease of 28.5 per cent in April 2020.
Thermal plant load factor (PLF) decreased to 47.9% in May 2020 due to lower demand, it noted.
The PLF or capacity utilization is measured in terms of the proportion of electricity generation compared to the total installed capacity.
Central, state and private sector PLFs decreased to 55.2% in May 2020.
Thermal PLFs have been the most affected by the decline in power demand over the period March-May 2020, given the mandatory status of nuclear, hydro and renewables.
The short-term price of electricity on the Indian Energy Exchange was lower at Rs 2.57 / kWh in May 2020, as the purchase and sale volume of bids increased to a negative 4.443 million units.
Increased demand for power on the short-term market due to favorable exchange prices for both distribution companies and open-access buyers, and a gradual lifting of the lockdown, led to traded volumes increasing by 47.8 per cent to 5.579 million units in May 2020.
The additional transmission line was lower than in June 2019-May 2020, with an additional 10,912 kilometers (km) of track added (June 2018-May 2019: 21,782 km).
The length of the transmission lines added in May 2020 was also lower at 190 km of track (May 2019: 977 km of track), with an additional 90.5% coming from the central sector, he added.
