KSEBOA - KSEB Officers' Association

Friday
Jul 28th
Text size
  • Increase font size
  • Default font size
  • Decrease font size
Home News Power Sector News Electricity generation growth in May highest in many years

Electricity generation growth in May highest in many years

PDF
Hits smaller text tool iconmedium text tool iconlarger text tool icon

The Reserve Bank of India's monetary policy statement mentions as a negative factor that "the output of eight core industries decelerated sharply in April on account of contraction in coal, crude oil and cement due to structural constraints and low demand. Furthermore, electricity generation decelerated due to depressed demand pricing out relatively expensive thermal output".

Well, as far as electricity production is concerned, things have changed markedly in May.

Electricity production, which remained subdued in April, picked up in May. Generation increased by 7.2% from a year ago, the best growth seen in the month in at least five years. The growth reflects the increased demand during the summer season.

As procurements by the power distribution companies rose, volumes in the spot power market at the Indian Energy Exchange hit record levels last month. Prices in the spot electricity market, which were in a downtrend, have risen compared to both April and from May 2016.

The improvement in prices should provide respite to companies that sell electricity in the merchant power markets. The benefit, however, will be contingent on sustainability of the generation momentum. Due to subdued growth in April, power generation so far this fiscal year (April plus May) is up only 5.5%. The generation figures exclude renewable energy.

Even then, if the onset of monsoon rains and reduction in temperatures slows down generation growth, the recent increase in electricity production can only have a fleeting impact on the generation companies' financial performances. Average utilization levels remain low even as generation capacities continue to expand.

Source- Mint

 

Add comment


Security code
Refresh

Random Videos

You need Flash player 6+ and JavaScript enabled to view this video.
Title: Power Quiz 2015 Final - Part-1

Latest Comments

Banner

Reference Book

 

Reference Book on Power

Electrical Engineering-- D' 1/4 Size Hard bound-- 1424 Pages-- Just Rs.1000/- only &n...

Visitors Counter

mod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_counter
mod_vvisit_counterToday85
mod_vvisit_counterYesterday4541
mod_vvisit_counterThis Month148955
mod_vvisit_counterLast Month153396

Online Visitors: 62
IP: 54.92.180.46
,
Time: 00 : 26 : 40