Overall power generation estimated at 223 billion units in September quarter

In the Septermber 2012 quarter, the overall power generated is estimated at around 223 billion units, 3% higher as compared to the generation in the corresponding quarter last year. At the same time, the generation capacity has growth at 14% year on year, which indicates drop in the capacity utilization.

This drop in the capacity utilization can be due to lower fuel availability for thermal power plants, which forms over 70% of the country’s total power generation capacity. Additionally, the capacity utilization of the hydro plants is also expected to be lower due to weaker monsoon.

Overall capacity utilization, in industry term – plant load factor is expected to decline by 2-3% year. It is expected to be around 65% against 67% in the September quarter last year and 74% during the June quarter this year.

Considering this, the quarterly result of most of the Indian power producing companies especially state companies – NTPCBSE 0.12 % and Neyvelli Lignite who have fuel cost pass through are expected to be flattish. However, performance of NHPCBSE -0.25 %, largest hydropower company can be disappointing.

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