Thermal power generation firing up to meet winter demand

Thermal power generation led by coal fired plants is increasing rapidly as the country heads into the winter season. Overall, the power deficit in the country has come down to 2.6 per cent in October as compared to 4.3 per cent in the same month last year.

The increase in thermal generation has compensated for the decline in hydro power generation. For northern region it has helped bring power deficit down to 5 per cent in October as compared 6.8 per cent in the same month last year.

Data from the Central Electricity Authority show that there has been a significant increase in thermal power generation in the last two months. Thermal power plants in the country are fired by two fuels – coal and natural gas, with the former being the primary fuel.

For the better part of this year, coal-based power plants were operating at less than 60 per cent with generation, marginally higher than the previous year.

However, generation from coal-based plants turned the corner in September 2015 when coal-based power plants generated 71,826.99 million units which was 20 per cent more than the same month last year.

The effect of this higher generation was reflected in the Index of Industrial Production numbers released earlier this week. Electricity production index rose 11.4 per cent in September.

The momentum has continued in October 2015 with coal-based power plants generating 14 per cent more than the same month last year at 79,131.95 million units. During the month, coal-based power plants operated at 67 per cent plant load factor, which was almost 3 percentage points higher than the same month last year.

Meanwhile, the Power Ministry’s policy of providing subsidy to gas-based power plants for operating their units with imported natural gas has started showing results.

Gas-based power generation in the country zoomed in September when plants generated 4,388.11 million units, an increase of 37.2 per cent over the same month last year.

While the growth rate has slowed in October 2015, gas-based power plants still produced 18.13 per cent more electricity at 4,205.81 million units as compared to the same month last year.

The rising generation from thermal power plants has helped overcome the sluggishness in hydro power generation. After being comparable to last year’s generation till August, hydro power generation has slid sharply since September. In September 2015, hydro power generation fell 23.8 per cent to 12,284.74 million units while in October 2015 it fell 18.2 per cent to 9,059.33 million units.

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