Impact of COVID-19 on the Power Sector
Distilled Policy Brief
- During the nationwide lockdown, power supply saw a decrease of about 25% year-on-year between March 24 and April 19 due to reduced industrial and commercial activities.
- Coal power generation reduced by about 25% between March 25 and April 19, lowering coal's contribution in total generation from 72.5% to 65.6%, as renewable energy sources retained their 'must-run' status.
- Total coal stock with power plants in the country rose to 29 days as of April 19, while the Plant Load Factor (PLF) of thermal power plants continued its long-term decline from 77.5% in 2009-10 to 56.4% in 2019-20.
🎯 Prelims High-Yield Examination Points
Renewable energy sources (solar, wind, and small hydro) possess 'must-run' status in India, meaning power generated by them must be prioritized by DISCOMs over thermal plants.
⚖️ Mains Analytical & Syllabus Linkages
Analyze the impact of industrial demand shocks on the financial health of DISCOMs and thermal power generation units in India, highlighting structural issues like falling Plant Load Factors.
🎯 UPSC Prelims Practice Drill
With reference to the dynamics of India's power sector during the 2020 nationwide lockdown, consider the following statements: 1. Coal-based power generation declined, lowering coal's contribution to total generation, as renewable energy sources retained their 'must-run' status. 2. The Plant Load Factor (PLF) of thermal power plants in India showed a long-term increasing trend from 2009-10 to 2019-20. 3. The decrease in total power supply during the lockdown was primarily driven by a sharp drop in electricity demand from domestic households. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 1 and 2 only
- [C] 2 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is correct because renewable energy retained its 'must-run' status, which led to a sharper drop in coal power generation and reduced coal's share in total generation from 72.5% to 65.6%. Statement 2 is incorrect as the Plant Load Factor (PLF) of thermal plants declined from 77.5% in 2009-10 to 56.4% in 2019-20. Statement 3 is incorrect because the reduction in demand was due to halted industrial and commercial activities, whereas domestic demand saw an uptick as people stayed indoors.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.