Summary

The fortunes of the power sector move are hitched to the economy. When gross domestic product (GDP) contracted in fiscal 2021 following the Covid-19 pandemic, demand for electricity slumped. Conversely, it recovered last fiscal, especially peak demand, as economic activity rebounded.

While demand continues to be high, especially due to heat wave in the past few months, supply has not kept pace. Several concerns have emerged amid the current crisis, including constraints in the coal evacuation infrastructure and high prices of imported coal.

The government has taken initiatives to address these challenges, and even invoked the emergency clause of the Electricity Act. The focus, now, is on resolution of structural issues.

Large outstanding dues from distribution companies (discoms) to generation companies (gencos) remains the major concern. The weak financial position of discoms limits their ability to buy high-priced power, especially now when input costs have surged.

Government measures such as the Revamped Distribution Sector Scheme and instalment-based payment scheme to gencos, apart from several regulatory changes, will have a far-reaching impact on the sector. In this backdrop, CRISIL is conducting a webinar on the power sector, where its will delve into:

• Trends in energy demand and near-term outlook
• Merchant market developments and near-term outlook
• Supply side challenges and trends in plant load factor (PLF) for gencos
• Key government initiatives and their impact assessment
• Discom issues, performance and expectations
• Outlook on receivables position of gencos and impact on liquidity
• Progress and impact assessment of emission reduction measure (flue gas desulphurisation)

This will be followed by a panel discussion involving industry experts and a Q&A session.

Do dial in.