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Power generation growth likely to double in FY20

   May 16, 2019        103        Debjoy Sengupta

Power generation from thermal, hydel and nuclear plants is expected to grow 6.5% this fiscal, nearly double of last year’s rise of 3.5%, the Central Electricity Authority has estimated. Total generation from these sources is estimated to be around 1,330 billion in 2019-20, of which 85% would be from thermal plants.

Among thermal plants, coal would contribute around 79%, while the rest would come from lignite, natural gas and liquid fuels.

Nuclear plants would contribute 3.3%, while hydropower would account for 10%.

Last year, conventional sources were expected to generate 1265 billion units but they supplied 1249.2 billion units.

Sabyasachi Majumdar, group head at ratings firm ICRA, said demand growth this year would be between 5% and 6%. Growth would be driven by the domestic sector, propelled by schemes like Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) and rural electrification. It will also depend on whether states supply 24×7 power to all.

Demand for power has been growing at a fast pace this year. Last week, demand rose to a record, well before the usual seasonal peak. Higher supply from renewable sources helped meet demand.

Highest daily-peak power demand during 2018-19 was attained on September 18 at 177.02 gigawatts, which was breached on May 8 this year, when maximum demand during the day was estimated at 178.25 gigawatts. Maximum supply during the day was 177.7 gigawatts, around 12% higher for the same day last year.

ET Bureau

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