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JSW ENERGY BOLT | ISSUE 2

Between Apr-Jan’19, within challenges persist in the the aim to deliver 24x7

the thermal segment only 0.1 sector. power to consumers.

GW capacity has been The government set an Executing this will be a
added on a net basis. Around aggressive target of daunting task for the
2.2 GW of thermal capacity installing 21.8 GW capacity in Discoms, which are already

has retired in this period, the current fiscal, though beleaguered by technical &

mostly from state sector, only ~6 GW has been added commercial inefficiencies
and this trend is likely to so far (~4.4 GW solar, ~1.2 and operational losses.
continue over the next few GW wind and rest in other Although post-Uday some

years. With limited capacity segments). progress has been achieved

addition and retirement of With a growing population, on those parameters, albeit
old and inefficient thermal rapid urbanization and out of the 27 states that
plants, thermal PLFs are strong economic growth joined the scheme only 7

displaying signs of recovery. trajectory (RBI expects GDP states have managed to limit

The all-India thermal PLF to grow at 7.4% in FY20), the AT&C loss below 15% target
stood at 61.1% for Apr-Jan’19 outlook for power demand is and only 4 Discoms have
periods vis-à-vis 59.3% in sanguine over the medium attained a positive gap

the corresponding period term. Moreover, unlocking between the average per

last year, primarily driven by latent demand esp. from unit revenue and cost
state and central sectors. rural areas via universal of supply.
While private sector PLF has household electrification will Therefore, undertaking

remained flat over this further stimulate demand. comprehensive sector

period, it is expected to Subsequent to 100% reforms that address
improve in the near future electrification, lies the task inefficiencies at various
with improvement in of improving the quality of value chains of the industry

demand supply dynamics power supply and achieving is the need of the hour.
which are further aided by

the imminent consolidation
in the sector.

Renewable energy
landscape in India has

transformed significantly in
the last three years, with

renewable capacity growing

at a CAGR of ~25%. However,
the momentum in capacity
addition is waning as various

policy and project execution

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