India's energy generation up 2.1% YoY in March

A total of 12.1GW of generating capacity was added in FY 2019.

India’s energy generation including renewables edged up 2.1% YoY in March 2019, thanks to a 26.2% YoY growth in hydropower generation and a 13.2% YoY increase in renewables generation, according to India Ratings and Research’s latest report.

Even though thermal energy generation declined 0.9% YoY, the available energy in India increased 2.5% YoY compared to the 2.1% YoY increase in the energy requirement, leaving a power deficit of 0.4% in March 2019. This is down from the 0.8% deficit recorded in March 2018.

In March 2019, the short-term power prices declined 22.4% YoY to $0.045 (INR3.12)/kWh, although it marginally increased MoM from $0.044 (INR3.08)/kWh in February. The lower YoY prices were driven by higher domestic coal availability with power plants, India Ratings and Research explained.

Also read: India turns to coal to meet power demand

“The higher coal availability was driven by a 9.5% YoY increase in coal production to 79.2 million tonne in March 2019, and 6.9% YoY to 606.9 million tonne in FY 2019. This led to a 89.6% YoY rise in the coal inventory at power stations to 30.9 million tonne in March 2019 and a decline in the number of power stations with subcritical level of coal inventory to 0 in March 2019 from 28 in March 2018,” the firm highlighted, adding that the inventory levels were also supported by higher reliance on hydro and renewable generation to meet the increase in energy demand.

During FY 2019, 12.1GW of generating capacity was added, driven by an 8.6GW addition in the renewable segment, and 3.5GW in the thermal segment.

The renewable capacity addition was driven by a solar capacity addition of 6.5GW and a wind capacity addition of 1.6GW during FY 2019.

Also read: India's solar capacity hit 30GW in Q1

“Despite a slower thermal capacity addition, India’s power segment remains reliant on thermal generation with a total capacity of 200.7GW in March 2019 out of the total generating capacity of 278.5GW,” India Ratings and Research added.