As Heatwave Spikes Power Demand, ICRA Says Thermal Plant Load Factor To Remain Healthy At 70%

As Heatwave Spikes Power Demand, ICRA Says Thermal Plant Load Factor To Remain Healthy At 70%

The northern part of the country, particularly the capital and its surrounding region, appears to be one of the regions affected by this phenomenon.

G R MukeshUpdated: Friday, June 21, 2024, 11:05 AM IST
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BALCO Thermal Plant |

Heatwaves have swept across different regions, not just in the sub-continent but also around the globe, including the western hemisphere, including regions in the United States and Canada, apart from parts of southern Europe, including Greece.

The northern part of the country, particularly the capital and its surrounding region, appears to be one of the regions affected by this phenomenon.

This has not only brought about record temperatures being recorded but also record power being consumed, resulting in a surge in demand for power in this ever-growing economy.

Thanks to the series of heatwaves, power demand in the capital has touched sky high, breaching all-time numbers. According to reports, the capital power demand reached an all-time high of 8,647 MW.

Thanks to the series of heatwaves, power demand in the capital has touched sky high, breaching all-time numbers. According to reports, the capital power demand reached an all-time high of 8,647 MW. |

Stable Supply

Thanks to the series of heatwaves, power demand in the capital has touched sky-high, breaching all-time records. According to reports, the capital's power demand reached an all-time high of 8,647 MW.

While these developments brought about some concern for stakeholders, according to a report from PTI, an ICRA report has deemed the thermal plant load factor to remain healthy, positioning it at 70 per cent.

According to PTI, ICRA in a statement said, "ICRA's outlook for the thermal power segment is "Stable", following the improvement in the thermal plant load factor (PLF) and healthy demand growth, thereby improving visibility on the signing of new power purchase agreements (PPAs)."

Delhi obtains the rest, 90 per cent from other sources, including  power stations run by Central government.

Delhi obtains the rest, 90 per cent from other sources, including power stations run by Central government. | Image Source: Wikipedia (Representative)

90% of Delhi's Demand From Outside

It is to be noted, that when it comes to Delhi, much like its water resources, it is dependent on other factors. Delhi government power plants only generate under 10 per cent of its requirements.

It obtains the rest, 90 per cent from other sources, including power stations run by Central government.

Despite the 'stable' marking, the rating agency has projected a negative outlook for the power distribution segment. This is the result of limited tariff hikes and continued loss-making operations.

Given the rapid and profuse demand, the government may encourage greater expansion of the segment, including private participation.

India, as a developing nation, still relies significantly on non-renewable sources of energy, particularly coal.

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