Indian power sector goes in reverse gear with more fuel but less demand

There is enough coal, and power generation capacity but no surplus demand for power

Just three years back, thermal power producers used to cry foul over the scarce availability of fuel. But, while coal supply is abundant, power demand has gone dry.

In July 2015, the plant load factor (PLF) or per unit output of the thermal power plants was down to 58.36 per cent — a decade’s low. The situation improved slightly with PLF climbing above 60 per cent at the close of 2015 but it has worsened again. For the April-December 2016, PLF of the thermal power stations has slid back to 59.64 per cent.

In simple terms it translates to —