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Electricity generation to grow by 5.7% in 2013-14

Total electricity generation in India is expected to grow at a healthy pace in 2013-14. In its report, Centre for Monitoring Indian Economy (CMIE) expects generation to grow by 5.7% in 2013-14 as compared to a 4% rise reported in 2012-13. During the year, it said that power stations in India are expected to generate 963.8 billion units of electricity and that this will be the highest electricity generation seen by the country in a single year.

Electricity generation from all three segments - hydel, nuclear and thermal - will grow at a healthy pace. Thermal power generation accounts for around 80-85% of total power generation in India. In 2013-14, thermal power generation is expected to grow by 5%, said the CMIE report. During the year, gas-based generation is expected to extend its fall. However, a higher output from coal-based power plants will help thermal power generation record reasonable growth.

Gas-based generation had declined by 6.8% in 2011-12 and by 28.5% in 2012-13, said the report. Lower availability of natural gas, especially due to declining output from the Krishna-Godavari basin, impacted gas-based power generation. The report further said that a downward-trend in gas-based generation is likely to continue in 2013-14. CMIE said that gas-based power generation will decline by around 10% in 2013-14.

 On the other hand, around 7% rise in coal-based power generation in 2013-14. Increase in power generation capacity is expected to fuel the growth in coal-based generation. In 2013-14, coal-based generation capacity is expected to increase by around 17,000MW.

 Coal availability in India is also expected to increase in 2013-14, on the back of higher production and imports of coal. CMIE is expecting a 4% rise in coal production in 2013-14. Coal imports are expected to increase by 15.9 % in 2013-14 to 157 million tonnes.

 Recently, Coal India signed fuel supply agreement (FSA) with NTPC and other power generation companies, for power stations commissioned on or after March 2009. As per the FSA, Coal India will have to supply 80% of the average contracted quantity (ACQ) of coal in 2013-14. Of this, 65 % of ACQ will be met from domestic coal production, whereas for remaining 15 % Coal India is allowed to resort to imports, said CMIE in its report. This will ensure higher availability of coal for power generation.

 The report said that hydel power generation is expected to grow by 9.3% in 2013-14 to 124.3 billion units. Increase in generation capacity and higher availability of water will lead to a healthy growth in hydel power generation. In 2013-14, hydel power generation capacity in India is expected to grow by 2,317 MW. Besides, assuming normal rainfall, water availability to hydel power stations is expected to improve this year.

 Water availability plays a crucial role in efficient operation of a hydel power station. Due to water shortage, hydel power generation had declined by 12.9% in the preceding financial year. India had witnessed uneven and scanty rainfall in 2012-13, which impacted availability of water. However, the situation is much better this year, as the country received bountiful rains during June and July.

 Nuclear power generation is expected to stage a modest recovery in 2013-14. After a mere 1.8% rise in 2012-13, CMIE expects nuclear power generation to grow by 5.9% in 2013-14 to 34.8 billion units.

source: The Times of India