Weekly Power Sector Round up: 17th July 2021

Power demand growing faster than renewables: IEA

Demand for power is growing at a faster rate than the growth of renewable power generation, leading to an increase in the use of coal and undermining efforts to reach carbon neutrality, warned the IEA (International Energy Agency).

Power demand is expected to go up by 5% this year, compared to the 1% drop it experienced last year on account of restrictions on activity placed to curb the global pandemic.

Renewable power production expanded by 7% in 2020 and is expected to grow 8% this year and 6% the next year. However, it would be able to serve only around half the projected growth in global demand in 2021 and 2022. The remaining demand would have to be served by polluting sources such as coal.

DISCOM losses decline 38% to Rs 38,000 cr

Losses of distribution companies (DISCOMs) have declined 38% to Rs 38,000 cr in FY20 from Rs 61,360 cr in FY19, according to Power Minister R K Singh. According to him, the reforms initiated by the Centre reduced line losses and gradually brought about improvement in operations.

The average gap between cost of power and revenue realisation also narrowed from 38 paisa per unit from 42 paisa per unit during this period.