During September 2018, short-term power prices rallied upwards to Rs 4.69/kWh (September 2017: Rs 4.09/kWh), post three months of decline, driven by a higher power demand, lower generation from wind capacities, and scanty rainfall and dry weather in some states in the second half of September 2018.

According to India Ratings and Research to meet the short-term power requirement, 5,725 MUs were traded on the Indian Energy Exchange in September 2018, up 44% m-o-m and 40% y-o-y.

In September 2018, all-India energy requirements increased 7.0% y-o-y and available energy increased 7.4% y-o-y, leaving a power deficit of 0.5% (September 2017: 0.9%). The power supply in September 2018 was met through higher hydro (up 23.5% y-o-y) and thermal generation (up 2.7% y-o-y).

Although generation from renewables also increased 53.6% y-o-y on account of an increase in installed capacity (20% y-o-y); generation declined 29.5% m-o-m, driven by lower generation from wind energy. Overall, the total power generation increased 8.7% y-o-y in September 2018.

The lower renewables generation coupled with no new capacity addition in the thermal space led to higher reliance on thermal power, which resulted in an increase in all-India PLF to 61.1% in September 2018 (September 2017: 60.7%).

Thermal generation in September 2018 was supported by an increase in monthly coal production by Coal India Limited (up 3.8% y-o-y) to 40.2 MT. Coal inventory at power stations also improved 30.3% y-o-y. However, the number of power plants with sub-critical level of coal inventory increased to 22 in September 2018 (September 2017: 21), on account of uneven distribution of coal across power stations and prioritised coal supply to central and state power stations.

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