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Sustainable Power Sector Model Required in the Demand-Supply Mismatch Scenario

News

India may be heading for a huge surplus of generation capacity because the 300 million people who don't have access to electricity also don't have the means to buy power from new plants that are being set up to meet Prime Minister Narendra Modi's vision of power for all, experts said.

Source:- ET

SNP Insight

With government's intention to expand power generation capacity 3-folds to 800 GW by 2030, issues like demand-supply mismatch have to be pondered. High supply and low demand will lead to shut down of multiple power generating units, resulting into decreased CUF and will directly affect the financial condition of the developers. If the scenario persists for long time it might lead to withdrawal of many developers from the market which could not sustain the burden of their shutting power plants. Need of the hour is to develop a sustainable power sector model which benefits the whole value chain of the sector. 

Source:- SNP Infra Research