Power Generation Cost Dropped by 10.3% in February

In February of this financial year, the cost of power generation decreased by 10.3% compared to the same month in the previous fiscal year.

This was due to an increase in the proportion of nuclear and hydropower in the overall electricity generation mix.

According to power generation data released on Monday, the cost of power generation decreased significantly by 28.5% in February, compared to the previous month of January in this fiscal year.

In contrast, power generation experienced a decline of 4.1% in February compared to last year.

Data indicates that 7,756 GWh (11,541 MW) power was generated in February 2023, compared to 8,088 GWh (12,036 MW) in February 2022. Additionally, there was an 8.9% month-on-month decrease in electricity generation.

Throughout the first eight months of the current financial year, power generation also decreased by 7.1% year-on-year to 84,840 GWh (14,547 MW), compared to 91,281 GWh (15,652 MW) generated during the corresponding months of the previous period.

During the month, there were notable changes in power generation from various sources. Hydropower generation increased by 39.2%, while nuclear sources saw an 85.8% increase. Additionally, power generation from RLNG increased by 19.3% and solar sources increased by 41.1%.

However, coal power generation decreased significantly by 57.4%, and generation from RFO decreased by 79.5%. The share of the wing in the generation mix also experienced a decline of 44%, with gas generation down by 7%.

In February, the share of nuclear sources in electricity generation doubled to over 24%, compared to 12.5% in the same month last year. The hydel share also rose to 26.5%, up from 18.2%.

Conversely, the share of coal and RFO in power generation decreased during the month.

Furthermore, the fuel cost for power generation declined by 10.3% year-on-year and 28.5% month-on-month. The average cost was Rs 8.01/KWh, compared to Rs 8.94/KWh and Rs 11.20/KWh in February 2022 and January 2023, respectively.

The year-on-year reduction in fuel cost was primarily attributed to the increase in nuclear, hydel, and solar power generation, as well as a 4% decrease in the cost of coal-based power generation, resulting from the introduction of new local coal-based power plants.