“Power surplus appears to be a temporary phase”

The surplus of power that we hear today is due to the low purchasing power of state discoms which are in the red.
Anil Kadam, Senior Manager, Energy Business, Schneider Electric India
Power surplus a temporary phaseThere have been reports that India is likely to be power surplus in 2016, something which has not happened in the past. ”While the government has initiated various measures to improve power generation as well as transformation in the last few years, the so-called power surplus appears to be a temporary phase as of now given that India still has one of the lowest per capita consumption among developing countries,” Anil Kadam, Senior Manager, Energy Business, Schneider Electric India.  “The surplus of power that we hear today is due to the low purchasing power of state discoms which are in the red and are unable to recover costs from consumers. The power plants in India are operating at low plant load factor and there is surplus of coal. At the same time, an estimated 300 million people in India are yet to receive power, which also needs to be accounted for while talking of power surplus.”

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