Coal-based plants to meet much of incremental power demand: Crisil

The plant load factor or capacity utilisation of coal fired thermal power plants is expected to improve 100 basis points to 65% this financial year despite strides achieved in renewable energy capacity addition, according to a study.

Power demand is seen growing 5-6% and a large portion will be met by existing coal-based plants despite renewable energy accounting for 90% of the 34GW capacity adeed in the last two years, Crisil said in its report.

In GW terms, this is a 9% growth in power capacities but on normative terms this is only 4-5% growth because renewables operate at 20% (for solar and wind) and 40% (for hydel) capacity.