Coal news and updates

This summer, the power situation is likely to be comfortable as prices and demand might not shoot up. For one, there has been a notable uptick in renewable power supply in the past year, which means adequate availability of electricity during the summer months when demand usually peaks.

In other words, your power distribution company (discom) will be in a sweet spot to make your hot months bearable. However, a lot will depend on the discom's ability to source cheap power and pass on the same to consumers.

 

In the past three months, the cumulative average power demand has remained at 137,000-140,000 megawatt (Mw). Fluctuations in demand are likely to occur due to erratic weather conditions. Power experts rule out any possibility of grid snags. The current installed capacity in the country is 290,000 Mw running at a plant load factor of 60 per cent. With enough room to meet any surge in power demand, spot power prices are also likely to remain subdued. The average power price is expected to be around Rs 3 a unit.

In March, the average price was Rs 2.67 a unit. In April, the price discovered to date was Rs 3.4 a unit, compared to Rs 3.8 a unit in the same month last year. It was Rs 3.4 a unit in May 2015 and Rs 3.8 a unit in June 2015. The prevailing situation is 'discoms-friendly', according to an analyst, who tracks the sector. With transmission woes also being eased the southern part of the country could be looking at a better summer this year. By next month, Rajasthan, Gujarat and Tamil Nadu will have considerable wind power, which will further improve availability of electricity.

Source: Business Standard