Weekly Power Sector Round up: 6th June 2020

Coronavirus crisis: India’s power generation falls 14.3% in May

India’s power generation in May fell at a slower rate than in April. Higher summer temperatures and easing of lockdown restrictions led to greater power demand.

Overall, generation fell 14.3% wrt the previous year as compared to the 24% drop seen in April. This, according to a Reuters analysis of provisional government data.

The share of fossil fuels in overall power generation in May has decreased to 70.71% as compared to 76% the previous year.

Coronavirus crisis: Global solar capacity addition estimated to drop by 20% in 2020

Several operations and financial setback caused by the pandemic has set solar capacity addition estimates by 20% to about 105GW from 135GW, according to a report by Bridge to India.

Apart from the pandemic, there were other short to medium term implications for sector from other factors. These included the sharp fall in fossil fuel and consequently conventional power prices, deteriorating financial condition of DISCOMs resulting in higher offtake risk for power generators, etc.