Power generation fall 3.4% in September
All-India energy demand and supply also decreased by 1.5% year-on-year and 1.4% year-on-year in September 2019, respectively, resulting in a decrease in energy deficit to 0.6% (September 2018: 0.7%).
All-India energy demand and supply also decreased by 1.5% year-on-year and 1.4% year-on-year in September 2019, respectively, resulting in a decrease in energy deficit to 0.6% (September 2018: 0.7%). Energy demand was lower due to extended monsoon and decrease in demand from industrial states such as Maharashtra (down 16.2% year-on-year), Gujarat (down 16.6% year-on-year) and Tamil Nadu (down 5.9% year-on-year).
On the supply side, the thermal sector witnessed a decrease in power generation to 78.6 billion units (September 2018: 87.4BUs) on account of lower demand and coal shortages at power plants.
All-India thermal plant load factor – capacity utilisation, fell to 51.1% in September 2019 (September 2018: 59.8%) as central, state and private sector capacity utilisation decreased to 57.8% (69.1%), 43.2% (55.2%) and 52.3% (56.1%), respectively.
All-India capacity utilisation at power plants is lowest since April 2015 whereas the decline in central sector capacity utilisation to 58% is substantial compared to an average capacity utilisation of 72% over FY16-FY19. Overall generation was aided by a 19.1% year-on-year increase in hydro generation to 20.8 billion units.
Coal production by Coal India declined for the third consecutive month to 23.5% year-on-year in September 2019, owing to lower production at its key subsidiaries Mahanadi Coalfields (MCL; down 33.3% year-on-year), South Eastern Coalfields (SECL; down 26.4% year-on-year) and Northern Coalfields (NCL; down 4% year-on-year). CIL’s production for 1HFY20 decreased by 6% year-on-year to 241 million tonnes.
Coal inventory at thermal power stations rose 56.1% year-on-year to 17.3 million tonnes in September 2019, however, it declined 19.9% month-on-month due to lower coal production. Coal availability at pithead and non-pithead plants on 30 September 2019 remained low at 6 days and 13 days, respectively.
The short-term power price at Indian Energy Exchange (IEX) decreased year-on-year to Rs 2.77 per unit (September 2018: Rs 4.69 unit) on account of a decrease in demand at the exchange. Difference in buy & sell bid volumes, in September 2019, in day-ahead market, increased to negative 4,504 million units (September 2018: negative 280MUs).
Transmission line addition has been lower in FY19 with 5,303 circuit kilometres added till September 2019 (September 2018: 9,932 circuit kilometres). Transmission line addition in September 2019 was 766 circuit kilometres (September 2018: 1,760 circuit kilometres) with 64% of addition coming from the central sector.