MUMBAI: As the government looks at thermal power actively to mitigate the rising demand , private sector companies such as Adani Power, JSW Energy and Tata Power are looking at adding thermal capacities and launching new projects.
Interestingly, some companies like Tata Power and JSW Energy, who have renewable energy as the main focus of their business, are now actively looking at the opportunities in the thermal energy space. The Adani Group is also looking at adding new thermal capacities.
Power companies refocusing on thermal capacity is not without a reason. The Union government is looking at over 80 gigawatt of new capacity additions in thermal by 2032 to meet the growing electricity demand. In the Union Budget, the FM proposed new thermal plants to be set up in the country to augment power supply.
The All India thermal PLF (plant load factor) has improved to 76.4% in Q1FY25 as compared to 70% in the corresponding quarter last year driven by 6% growth in demand.
The 2023-24 Economic Survey stated India will target a diversified set of sources for energy security with a significant place for thermal power, including coal, to minimise risks associated with systems while pursuing low-emission pathways in line with national commitments.
Adani Power, India’s largest private thermal power producer, is looking to double its capacity from 15GW now to 30GW by 2030, chief executive S B Khyalia said in a Q1 earnings call with analysts recently.
The company acquired Lanco Amarkantak Power in Chhattisgarh, which has a total capacity of 1.93 GW. The acquisition of Coastal Energen (1.2 GW capacity) is underway. It is also looking at further acquisitions worth 1.1 GW capacity, it said in a presentation. Adani Power is exploring bids worth 6,400 MW by states, including Uttar Pradesh, Rajasthan, Khyalia said. “Additions will depend on future demand for power,” he said.
Tata Power, which was not keen to add new capacities in thermal energy, will look at new projects depending on the opportunities and returns they offer, its managing director and CEO Praveer Sinha said in a call on Tuesday.
Tata Power has so far maintained it will not do new thermal projects as it is focusing on renewable energy. The company is targeting two-thirds of its capacity as renewable energy by 2030.
“Situation is evolving. We will examine it as and when opportunity comes (for new thermal projects),” Sinha said, adding that the company will examine the thermal opportunities from energy security point of view.
JSW Energy is also looking at adding greenfield capacity. “As and when the opportunity comes, we will definitely look at this opportunity for adding further capacities in thermal space,” said Sharad Mahendra , deputy managing director at JSW Energy in an earnings call with analysts last month.
It takes time to set up a new thermal power plant but whether they will go for any significant investment in thermal projects depends on power purchase agreements (PPAs) in hand, he said.
In Q1, JSW energy ‘s total thermal generation increased 4% to 4.6 billion units.
Source: The Financial Express
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