Thermal plants’ Jan load factor at 5-yr low as slowdown hits power demand
The average plant load factor (PLF) of thermal power generation units is on a decline in the country. At 57.61 per cent, the PLF in January touched a five-year low.
In 2019, the PLF witnessed double-digit slump in most months. The fall corresponds to a decline in electricity demand, which recorded just a 0.28 per cent growth in the year — the lowest since 2014.
India Ratings and Research (Ind-Ra) has revised the power sector outlook to negative for financial year 2020-21 (FY21) from stable. This is because of muted growth in demand and rising dues of distribution companies (discoms) as a result of limited improvement in their financial profile since the launch of the Financial Restructuring Plan and Ujwal DISCOM Assurance Yojana (UDAY).
