In October 2019, all-India energy demand declined 13.2 per cent year-on-year for the third consecutive month to 98 billion units (BUs) on account of an extended monsoon and a fall in energy demand from industrial states such as Maharashtra (down 22.4 per cent y-o-y), Gujarat (down 18.8 per cent y-o-y) and Tamil Nadu (down 5.2 per cent y-o-y) due to the economic slowdown, rating agency, India Ratings and Research said in a statement.
According to the rating firm, All-India energy supply declined 13.0 per cent y-o-y in October 2019, resulting in a reduction in an energy deficit to 0.5 per cent against 0.7 per cent during October 2018.
â€œOn the supply side, electricity generation declined 12.9 per cent y-o-y to 98.9BUs on a 19.3 per cent fall y-o-y in thermal generation to 78.7BUs due to lower demand. Thermal generation was impacted due to a 21.8 per cent y-o-y increase in hydro generation to 15.1BUs. Average capacity utilisation for thermal power plants fell to 49.2 per cent in October 2019 against 63.8 per cent in October 2018, as central, state and private sector capacity utilisation decreased to 55.5 per cent (71.0 per cent ), 40.9 per cent (60.4 per cent ) and 51.0 per cent (60.8 per cent ), respectively,â€ it said in a statement.
Short-term power price at the Indian Energy Exchange (IEX) decreased to Rs 2.71 per unit in October 2019 (September 2019: Rs 2.77 per unit) from Rs 5.94 per unit in October 2018 on account of a fall in demand on the short-term power exchanges. The difference in buy and sell bid volumes in October 2019 in day-ahead market widened to negative 5,848 million units (MUs) against 402 MUs in October 2018, on account of subdued demand, the Agency has estimated.
After declining for four consecutive months, coal production at Coal India (CIL) increased to 39.4 million tonnes (mt) in October 2019. However, it was still 21 per cent down on a year-on-year basis owing to lower production at its key subsidiaries Mahanadi Coalfields (down 34.9 per cent y-o-y) and South Eastern Coalfields Limited (down 30.6 per cent y-o-y).
Coal inventory at thermal power stations rose 88.6 per cent y-o-y to 19.0mt due to higher coal production and lower demand as coal offtake declined to 40.5mt (October 2018: 49.96mt). Coal availability at pithead and non-pithead plants on 31 October 2019 remained at six days and 14 days, respectively.
Transmission line addition has been lower in FY20 with 5,988 circuit kilometres added till October 2019 (April-October 2018: 11,799 circuit kilometres). The transmission line addition in October 2019 was 766 circuit kilometres (September 2018: 1,760 circuit kilometres) with 77 per cent of addition coming from the state sector.
Referred from economic times, dated 26 Nov, 2019