Power Sector Update

Let’s take a look at how certain power sector segments have fared since last year and what impact these developments will have in the years to come.

- R Srinivasan

The power sector limelight in the last couple of years has largely been dominated by solar energy. So, for a change comes this heart-warming piece of news that India by the early 2020s will replace Russia as the world’s third largest refiner. In terms of conventional sources of energy, the government has set a target of generating 1,229.4 billion units in 2017-18 from thermal, hydro and nuclear sources, as per Central Electricity Authority (CEA) data. The CEA though has warned that about 46,000 MW (30,000 MW from thermal and 16,000 MW from gas) of power capacity is stranded due to poor last mile connectivity. Also, as per reports, about half of the country’s thermal power plants are over 25 years old, and a large number of them are approaching 40. Analysts say that the generation capabilities of thermal plants reduce by about 40% after the operational age of 25 years. Keeping in mind the environment ministry’s norms for coal-based power stations to cut down emissions and improve the ambient air quality around power plants, Power Minister Piyush Goyal recently said that companies should now focus on replacement of old plants with energy efficient technologies. He said that as much as 39,710 MW capacity based on supercritical technology has already been added and 48,060 MW of super-critical power generation is in the pipeline.