Plant load factor for private power companies decline

A lack of level-playing field between government-owned power plants and private players has resulted in a decline in the plant load factor (PLF).

PLF is the ratio of average power generated by the plant to the maximum power that could have been generated in a given time. More PLF results in more revenues and lesser will be cost of per unit (kWh) energy generated.

The discrimination against private players in coal-based power plants and the lack of a level-playing field with government entities has become a cause of concern in the last few years.

As per Central Electricity Authority (CEA) data, Power plants with the central government backing improved its PLF from 72.4 per cent in FY18 to 72.8 per cent in FY19. Further, the national average PLF was 60.9 per cent in fiscal 2019.