Are electricity tariffs set to rise? This is what’s weighing on power distribution companies
INDIA: The inability to meet demand in the peak seasons due to a mismatch between renewable energy generation curve and insufficient domestic coal supplies has since long troubled India’s power sector. This year too the scenario doesn’t seem to be much different from the previous years. “We are staring at a huge problem because peak power deficit scenario is unlikely to improve anytime soon,” said Vivek Sharma, Senior Director, CRISIL Infrastructure Advisory. The discoms will remain under pressure and the spot prices of electricity will continue to surge surge in the near term, the ratings agency said.
Various structural and seasonal factors which may put pressure on spot prices of electricity include unmet and suppressed demand, no new thermal capacities announced in the past 2 years, and inability to meet peak demand because of mismatch with renewable energy generation curve and insufficient domestic coal supplies, the report said.
Published in Financial Express, 3rd April, 2018