Question : Capacity Utilization of Power Plants

(a) whether the power plants that were set up after the year 2009 have been running at less than 50% capacity utilization level in the country and if so, the details thereof;

(b) whether the higher coal price and clean energy cess have adverse impact on power plants;

(c) if so, the details thereof and other reasons for less capacity utilization of power plants in the country;

(d) whether the Government has taken steps to bring down the cost of power and if so, the details thereof; and

(e) the steps taken/being taken by the Government for full capacity utilization level of power plants in the country?

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER,
COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI PIYUSH GOYAL )

(a) : The present Plant Load Factor (PLF) of Thermal Power Units for the period (April-December, 2016) has been 59.64%.

(b) : The cost of generation in a thermal power station vary and depends upon parameters like type of fuel, source of fuel, location of plants, size of the unit, technology of the plant efficiency. The increase in energy charges are directly proportional to increase in fuel price.


(c) : The reasons for under-utilization of plants include, inter alia, rapid increase in generation capacity including massive expansion of renewables, conservation of energy because of efficiency measures and low availability of gas for gas based thermal power stations.

(d) : Through appropriate policy framework and programmes, the Government is promoting efficiency in generation, transmission and distribution business as also supporting strengthening of the distribution and transmission infrastructure, with a view to reducing the Aggregate Technical and Commercial (AT&C) losses. These measures, along with the Government’s emphasis on discovery of tariff through competitive bidding, contribute towards lowering of tariff rates.

(e) : The following steps are being taken for full capacity utilization of power generation capacities:

i. To revive and improve utilization of the stranded gas based
power generation capacity in the country, Government of India has sanctioned a scheme supported with PSDF (Power System Development Fund) for utilization of gas based power generation capacity for the years 2015-16 and 2016-17. The scheme envisages supply of imported Re-gasified Liquefied Natural Gas (RLNG) to the stranded gas based plants as well as plants receiving domestic gas, selected through a reverse e-bidding process.

ii. UDAY (Ujjwal DISCOM Assurance Yojana), a scheme for the Financial turnaround and operational improvement of Power Distribution Companies (DISCOMs), has been approved by the Government of India with an objective to improve the operational and financial efficiency of the State DISCOMs, which may enable them to procure more power from the generators, thus increasing their Plant Load Factor.

iii. Implementation under Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development System (IPDS) for strengthening of sub-transmission and distribution networks and for segregation of agriculture feeders to give adequate and reliable supply and reduce line losses.

iv. With "24x7 Power for All" an initiative taken jointly with the State Governments, the access to electricity would increase and accordingly the electricity demand would also increase leading to increased utilisation of power generation. Plan for 35 States/UTs out of 36, have already been prepared and are under implementation.

v. Retirement of old and inefficient units. During 12th Plan period till September, 2016, a total of 3000 MW of inefficient thermal generating capacity has been retired. This will also result in better utilisation of more efficient plants.
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