Operating performance of India’s thermal power projects is set to improve, according to a report from India Ratings and Research. This assumes significance given that India’s coal-fuelled power projects are facing low-capacity utilisation due to muted demand.
“India Ratings and Research (Ind-Ra) opines that the operating performance of thermal power plants could improve meaningfully, given the change in the incremental demand supply equation after a decade. The incremental demand is likely to outstrip the incremental capacity addition,” the report said.
India’s peak electricity demand fell during the first wave of the coronavirus pandemic, with commercial and industrial consumption hit after many factories closed. However, domestic consumption, which generates comparatively lower tariffs, went up. The demand which had since revived took a hit again amid the second wave. India registered a record high of 189.6 gigawatt (GW) in January.