Tepid power consumption in Chhattisgarh despite soaring temperature

The demand for power in Chhattisgarh is not rising in sync with the temperature in the state, which has reached about 40 degress in the capital, Raipur. Instead there has been a decline in electricity offtake in the state

Air-conditioners and coolers in major cities in the state were indeed switched on to beat the heat during the first week of April.

However, the state-owned Chhattisgarh State Power Distribution Company (CSPDC) is in a fix, because power consumption is down to almost 1,000 Mw in what the company considers as peak season.

“Normally the demand increases to 4,500-Mw in April, but this year it is only 3,500 Mw,” CSPDC officials said. A plausible explanation offered was that consumption has been lower this season due to the Covid-19 lockdown, which has forced shut industrial units and commercial establishments, which are large consumers.

 The industrial sector only consumed about 40 per cent of the total demand. Following the decrease in offtake, the Chhattisgarh State Power Feneration Company had curtailed production at its units.

While the generating company has been able to cut production costs the distribution company would have to take a loss of about Rs 500 crore, the officials said. It has already beem reeling under a crisis as the state government had subsidised power for consumer by halving electricity tariff.

The lockdown didn't make matters any better. This is because steel makers and small industrial units in the sate had come out with a fresh demand to revive their sectors. They had urged the state government to reduce power tariff for the industrial sector, which is a major customer of the power distribution company in the state.

As investment in power projects dries up, Thermax eyes 'captive' biz boost

Companies News:

Thermax Ltd., an Indian maker of electricity-generation equipment, expects demand for captive power plants, typically small units to meet the internal needs of a business, to rise in the next 4-5 years as investments in large power projects slow down and state utilities struggle to give reliable supplies.

Industries such as food processing, textiles, pharmaceuticals and automobiles are expanding capacities and will look at generating their own power rather than depending on the unreliable grid, Thermax’s Managing Director M.S. Unnikrishnan said in an interview.

The expected revival of captive power in India points to a chronic problem in the country’s power industry -- indebted state utilities are unable to ensure reliable supply because they’re financially hamstrung to purchase adequate power. In addition, India’s thermal power sector suffers from fuel shortages, delayed payments and underutilized capacities causing investors to shun it. The industry is among the biggest contributors of bad loans in the country and lenders have struggled to find new investors.

Equipment orders for large thermal plants shrank to about 4 gigawatts in the year ended March 31, leaving more than three-quarters of the equipment-making capacity unused and intensifying price wars among constructors, Unnikrishnan said.

“Lack of investment in power plants in the country is going to compel many new investors to go for captive power plants,” said Unnikrishnan in an interview. “It is our bread and butter.”Generation capacity built for captive use has risen more than 26 per cent through 2018 to 51.5 gigawatts, according to data from the Central Electricity Authority.


 However, captive power is not without its problems. The plants are at a disadvantage compared with conventional power producers in summer months when power demand surges and supplies are prioritized to non-captive consumers...Read more