Lok Sabha Question No. 1342 (UNSTARRED), answered on 2017-02-09
Subject: Capacity Utilization of Power Plants
Ministry: POWER
Asked by: KUNWAR HARIBANSH SINGH, VIJAY KUMAR S.R., T. RADHAKRISHNAN, SUNIL BALIRAM GAIKWAD, GAJANAN CHANDRAKANT KIRTIKAR, BIDYUT BARAN MAHATO, SUDHEER GUPTA

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1342 TO BE ANSWERED ON 09.02.2017

## CAPACITY UTILIZATION OF POWER PLANTS

1342.   KUNWAR HARIBANSH SINGH: SHRI S.R. VIJAYA KUMAR: SHRI T. RADHAKRISHNAN: DR. SUNIL BALIRAM GAIKWAD: SHRI GAJANAN KIRTIKAR: SHRI BIDYUT BARAN MAHATO: SHRI SUDHEER GUPTA:

Will the Minister of POWER be pleased to state:

(a) whether  the  power  plants  that  were  set  up  after  the  year  2009  have been running at less than 50% capacity utilization level in the country and if so, the details thereof;

(b) whether  the  higher  coal  price  and  clean  energy  cess  have  adverse impact on power plants;

(c) if so, the details thereof and other reasons for less capacity utilization of power plants in the country;

(d) whether  the  Government  has  taken  steps  to  bring  down  the  cost  of power and if so, the details thereof; and

(e) the  steps  taken/being  taken  by  the  Government  for  full  capacity utilization level of power plants in the country?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) : The present Plant Load Factor (PLF) of Thermal Power Units for the period (April-December, 2016) has been 59.64%.

(b) : The  cost  of  generation  in  a  thermal  power  station  vary  and depends upon parameters like type of fuel, source of fuel, location of plants, size  of  the  unit,  technology  of  the  plant  efficiency.  The  increase  in  energy charges are directly proportional to increase in fuel price.

- (c) : The  reasons  for  under-utilization  of  plants  include,  inter  alia, rapid increase in generation capacity including massive expansion of renewables, conservation of energy because of efficiency measures and low availability of gas for gas based thermal power stations.
- (d) : Through  appropriate  policy  framework  and  programmes,  the Government is promoting efficiency in generation, transmission and distribution business as also supporting strengthening of the distribution and transmission infrastructure, with a view to reducing the Aggregate Technical and Commercial (AT&C) losses. These measures, along with the Government's  emphasis  on  discovery  of  tariff  through  competitive  bidding, contribute towards lowering of tariff rates.
- (e) : The following steps are being taken for full capacity utilization of power generation capacities:
- i. To revive and improve utilization of the stranded gas based power  generation  capacity  in  the  country,  Government  of  India  has sanctioned a scheme supported with PSDF (Power System Development Fund)  for  utilization  of  gas  based  power  generation  capacity  for  the years 2015-16 and 2016-17. The scheme envisages supply of imported Re-gasified  Liquefied  Natural  Gas  (RLNG)  to  the  stranded  gas  based plants  as  well  as  plants  receiving  domestic  gas,  selected  through  a reverse e-bidding process.
- ii.  UDAY (Ujjwal DISCOM Assurance Yojana), a scheme for the Financial turnaround and operational improvement of Power Distribution Companies (DISCOMs), has been approved by the Government of India with an objective to improve the operational and financial efficiency of the  State  DISCOMs,  which  may  enable  them  to  procure  more  power from the generators, thus increasing their Plant Load Factor.
- iii. Implementation under Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)  and Integrated Power Development System (IPDS) for strengthening  of  sub-transmission  and  distribution  networks  and  for segregation of agriculture feeders to give adequate and reliable supply and reduce line losses.
- iv. With  "24x7  Power  for  All"  an  initiative  taken  jointly  with  the  State Governments, the access to electricity would increase and accordingly the  electricity  demand  would  also  increase  leading  to  increased utilisation of power generation. Plan for 35 States/UTs out of 36, have already been prepared and are under implementation.
- v.  Retirement  of  old  and  inefficient  units.  During  12 th   Plan  period  till September, 2016, a total of 3000 MW of inefficient thermal generating capacity has been retired.  This will also result in better utilisation of more efficient plants.

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