Power developers who run natural gas-based power plants are lobbying for the diversion of gas supply from the fertiliser sector and lowering of the plant capacity for recovery of fixed costs and assured return on equity. Amish Shah of Credit Suisse Research said this in a recent report.
Owing to shortage of gas supply, power plants of Lanco, GMR, GVK, Essar, NTPC, RGPPL, Torrent, VBC Group — with a total capacity of 9,861 mw — are functioning at low plant load factor.
Some estimates show that the power generated ranged from about 11 per cent to 57 per cent last year. The average output was about 39 per cent last year and 17 per cent in May.
The report by Credit Suisse suggests that gas-based power producers are more concerned about lack of gas supply than pricing of the fuel.
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