Why thermal power is still key to meeting growing energy needs
NTPC plans to add 11.2GW of thermal power capacity beyond FY26. This is in addition to the 10GW under construction which is set for commissioning by FY26. It also aims to boost its renewable energy capacity to 20GW by FY26 and 60GW by FY32 against the current 3GW.
Against this backdrop, the plant load factor (PLF) at most power companies has been improving. Data compiled by Nuvama shows, PLF at Tata Power’s thermal plant CGPL during April-November 2023 was at 64% compared to 41% a year ago. During the same period, PLF at JSW Energy’s Vijaynagar plant rose to 65% from 58%.
Nuvama believes power demand during evening hours is now met by ramping up thermal PLF, which is likely to continue until renewable energy-plus storage comes up in four-five years. Currently, without the contribution of solar energy, power deficit may rise in the evening hours. Investments in thermal capacity are expected to yield substantial returns for companies in this sector.
Read more on livemint.com
