Private thermal power plant utilisation rises in May on election demand growth

Electricity produced by conventional power plants in May recorded a rise of 5.1% year-on-year (y-o-y), thanks to a surge in demand stemming from poll-related activities in the scorching summer. Conventional power plants (coal, gas, nuclear and hydro) generated 111.1 billion units (BU), and private power plants seemed to have gained the most with their utilisation levels (PLF) rising by 4.8 percentage points to 61.1%. The overall average thermal PLF was 63.2%.

Since electricity cannot be stored, generation is the most robust indicator of consumption trends. Rising utilisation rates is a good news for private power players after a dismal FY19, when their average PLF remained muted at 54.9%, keeping debt-servicing capabilities suppressed.