Power Sector Outlook : The pricing of the extra units generated will be regulated based on the average lowest cost of imported coal Says Sheen Zacharia George, Geojit Financial Services
Below is Quote On Power sector outlook from Sheen Zacharia George, Research analyst at Geojit Financial Services
Production at imported coal plants was low due to increased power generation from renewable and low-cost domestic coal plants. Anticipating the increase in power consumption in the coming summer, plants using imported coal are directed to operate at full capacity. This would increase the Plant Load Factor (PLF) of these plants and enable them to sell more units for imported coal plants of NTPC and Tata Power. Excess power generated beyond the requirements of existing Power Purchase Agreements (PPAs) will be sold through the power exchanges. The pricing of the extra units generated will be regulated based on the average lowest cost of imported coal, providing marginal leeway to the generators.
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