Power Foundation of India

Coal plays a significant role in the Indian power sector. In FY 2024, coal & lignite-based power plants accounted for 76% of India’s electricity generation. However, in recent decades, the pressing need to address climate change has prompted a shift away from coal and toward renewable energy sources. India's transition away from coal will affect each state differently. In this infographic, we will analyze the impact of this transition on the states due to the: 1️⃣ Share of coal & lignite power plants in the total installed capacity of the state 2️⃣ CAPEX invested in coal & lignite power plants 1️⃣ Share of coal & lignite power plants in total installed capacity of the state  One aspect of analyzing the impact of the transition is the dependence of a state’s economy on coal & lignite-based plant capacity located in the state. Fig. 1 illustrates the share of coal & lignite-based power plants in total installed capacity, located within the states, and respective per capita Gross State Domestic Product (GSDP). ▪️ States marked in “Red” have lower per capita GSDP and higher share of coal & lignite in total installed capacity compared to all India average ▪️ These states may find it challenging to decarbonize due to the potential job losses in coal power plants and associated activities ▪️ Bubble size indicates the state’s share of renewable energy sources (RES) potential in All India RES potential ▪️ States with relatively lower RES potential (smaller bubble size) will find shifting away from coal more challenging 2️⃣ CAPEX invested in coal & lignite power plants   Another aspect of analyzing the impact of this transition is the CAPEX invested in Coal & lignite-based power plants. Fig. 2 illustrates the median age of coal & lignite-based power plants situated within each state, along with the share of these plants in the total installed capacity of those states. ▪️ States marked in “Red“ have a younger fleet of power plants and a larger share of coal & lignite-based power plants in their total installed capacity. ▪️ These states may find the transition towards non-fossil-based energy sources economically unattractive. This is due to substantial locked-in investment. It is evident from Fig. 1 & Fig. 2, that states such as Jharkhand, Chhattisgarh, Bihar, Odisha, & Madhya Pradesh will face higher stress while shifting away from coal. Besides its role in the power sector, coal plays a significant part in other areas as well, such as ▪️ Energizing industries like cement, steel, chemicals, textiles ▪️ Contributing to government revenues at both the state & central levels ▪️ Sustaining both direct & indirect livelihoods in coal-producing regions This multi-faceted contribution underscores the difficulty of shifting away from coal as a primary fuel source, at least in the near future. For more information, visit https://lnkd.in/gY5bUTAg #theenergydashboard #powerinsights #dataanalytics

We discussed in our previous post (Financial Performance of DISCOMs - dated Sep. 12, 2024) despite reduction in AT&C losses, the decline in the ACS-ARR gap has not been proportionate, resulting in continued financial losses for DISCOMs. In this infographic, we will focus on the trend of the ACS-ARR gap and then examine ACS and ARR for the period from FY 2021 to FY 2023. Given below are the key observations of the ACS-ARR gap trend: The ACS-ARR gap has shown a fluctuating trend over the last two years (Fig. 1). It decreased from Rs 0.63/kWh in FY 2021 to Rs 0.10/kWh in FY 2022 and increased again to Rs 0.46/kWh in FY 2023. Now, let us analyze both ACS and ARR trends for the last two financial years. FY 2022 ACS-ARR Gap decreased because of the following reasons: 1️⃣ ACS increased marginally (by 1.3%) from Rs 6.21/kWh in FY 2021 to Rs 6.29/kWh in FY 2022 (Fig. 2). This was due to increase in the Cost of Power Purchase, which increased by 1.27% from Rs 4.72/kWh to Rs 4.78/kWh (Fig. 3). 2️⃣ ARR increased sharply (by 10.9%) from Rs 5.58/kWh in FY 2021 to Rs 6.19/kWh in FY 2022 (Fig. 4). This increase was due to improved revenue from operations, resulting from enhanced collection and billing efficiency. However, the increase in Collection efficiency was driven by increase in receipt of tariff subsidy vis-à-vis the tariff subsidy billed (Fig. 5). This can be attributed to the payment of outstanding subsidy arrears by the states. 3️⃣ The ACS-ARR gap reduced as the rate of increase of ARR was greater than the rate of increase of ACS. FY 2023 ACS-ARR Gap increased because of the following reasons: 1️⃣ ACS increased sharply (by 13%) from Rs 6.29 /kWh in FY 2022 to Rs 7.11/kWh in FY 2023. This was due to two main reasons: a)      Cost of Power Purchase increased (by 14.85%) from Rs 4.78/ kWh to Rs 5.49/ kWh (Fig 3) due to increase in the following: ▪ Cost of Coal based generation (by 49%) ▪ Cost of Gas based generation (by 29%) ▪ Cost of Short-term power purchase (by 35%) ▪ Fixed cost of power plants (by 21%) ▪ Transmission charges (by 10%) b)     Interest Cost increased (by 9.09%) from Rs 0.44/kWh to Rs 0.48/kWh (Fig 6) due to increase in:   ▪ Total borrowings of the DISCOMs (increased Rs 6.14 lakh crore in FY 2022 to Rs 6.84 lakh crore in FY 2023) (Fig. 7). ▪ Short term borrowings as a percentage of the total borrowings (increased from 8% in FY 2022 to 13% in FY 2023) (Fig. 8). 2️⃣ ARR increased by 7.9% due to a rise in revenue from operations, driven by an increase in the tariff subsidy received compared to the tariff subsidy billed (Fig. 4). 3️⃣ The ACS-ARR gap widened because rate of increase of ACS was greater than that of ARR. #theenergydashboard #powerinsights #powersector #dataanalytics #powertrends

We discussed in our previous post (Financial Performance of DISCOMs - dated Sep. 12, 2024) despite reduction in AT&C losses, the decline in the ACS-ARR gap has not been proportionate, resulting in continued financial losses for DISCOMs. In this infographic, we will focus on the trend of the ACS-ARR gap and then examine ACS and ARR for the period from FY 2021 to FY 2023. Given below are the key observations of the ACS-ARR gap trend: The ACS-ARR gap has shown a fluctuating trend over the last two years (Fig. 1). It decreased from Rs 0.63/kWh in FY 2021 to Rs 0.10/kWh in FY 2022 and increased again to Rs 0.46/kWh in FY 2023. Now, let us analyze both ACS and ARR trends for the last two financial years. FY 2022 ACS-ARR Gap decreased because of the following reasons: 1️⃣ ACS increased marginally (by 1.3%) from Rs 6.21/kWh in FY 2021 to Rs 6.29/kWh in FY 2022 (Fig. 2). This was due to increase in the Cost of Power Purchase, which increased by 1.27% from Rs 4.72/kWh to Rs 4.78/kWh (Fig. 3). 2️⃣ ARR increased sharply (by 10.9%) from Rs 5.58/kWh in FY 2021 to Rs 6.19/kWh in FY 2022 (Fig. 4). This increase was due to improved revenue from operations, resulting from enhanced collection and billing efficiency. However, the increase in Collection efficiency was driven by increase in receipt of tariff subsidy vis-à-vis the tariff subsidy billed (Fig. 5). This can be attributed to the payment of outstanding subsidy arrears by the states. 3️⃣ The ACS-ARR gap reduced as the rate of increase of ARR was greater than the rate of increase of ACS. FY 2023 ACS-ARR Gap increased because of the following reasons: 1️⃣ ACS increased sharply (by 13%) from Rs 6.29 /kWh in FY 2022 to Rs 7.11/kWh in FY 2023. This was due to two main reasons: a)      Cost of Power Purchase increased (by 14.85%) from Rs 4.78/ kWh to Rs 5.49/ kWh (Fig 3) due to increase in the following: ▪ Cost of Coal based generation (by 49%) ▪ Cost of Gas based generation (by 29%) ▪ Cost of Short-term power purchase (by 35%) ▪ Fixed cost of power plants (by 21%) ▪ Transmission charges (by 10%) b)     Interest Cost increased (by 9.09%) from Rs 0.44/kWh to Rs 0.48/kWh (Fig 6) due to increase in:   ▪ Total borrowings of the DISCOMs (increased Rs 6.14 lakh crore in FY 2022 to Rs 6.84 lakh crore in FY 2023) (Fig. 7). ▪ Short term borrowings as a percentage of the total borrowings (increased from 8% in FY 2022 to 13% in FY 2023) (Fig. 8). 2️⃣ ARR increased by 7.9% due to a rise in revenue from operations, driven by an increase in the tariff subsidy received compared to the tariff subsidy billed (Fig. 4). 3️⃣ The ACS-ARR gap widened because rate of increase of ACS was greater than that of ARR. #theenergydashboard #powerinsights #powersector #dataanalytics #powertrends

In our previous post, we analyzed the improving operational performance of DISCOMs over the last six years. In this infographic, we will examine their financial performance. We have analyzed the accumulated losses, total borrowings, and net worth of DISCOMs for the period from FY 2018 to FY 2023 and observed the following: ⏺ Accumulated losses have increased from Rs. 4.3 lakh crore to Rs. 6.5 lakh crore, with a compound annual growth rate (CAGR) of 7.03% (Fig. 1). ⏺ During this period, DISCOMs total borrowings have also increased from Rs. 4.8 lakh crore to Rs. 6.8 lakh crore, with a CAGR of 6.68% (Fig. 2). ⏺ Another notable trend is the continued negative net worth of DISCOMs. In FY 2023, the aggregate net worth of all DISCOMs in India was Rs. -1.4 lakh crore (Fig. 2). These metrics clearly highlight the financial issues faced by DISCOMs in their operations. To understand the reasons behind these issues, it is important to analyze the ACS-ARR gap of DISCOMs. ⏺ Average Cost of Supply (ACS) = Total Expenditure / Total Input Energy ⏺ Average Revenue Realized (ARR) = (Revenue from sale of power (on subsidy-received basis) + other income)/ Total Input Energy ⏺ ACS-ARR gap is the difference between the Average Cost of Supply and the Average Revenue Realized. ⏺ A positive ACS-ARR gap (i.e., ACS > ARR) indicates the losses faced by DISCOMs per unit of electricity sold; it shows that DISCOMs are unable to meet their expenses with the revenue realized. ⏺ Conversely, a negative ACS-ARR gap (i.e., ACS < ARR) indicates the surplus received by DISCOMs per unit of electricity sold. Over the last six years, the ACS has consistently been higher than the ARR (Fig. 3). This indicates that DISCOMs have not been able to recover their cost of supply, as revenue recovery has remained lower than the growth in the cost of supply. Despite reductions in AT&C losses due to improvements in collection and billing efficiency, the decline in the ACS-ARR gap has not been proportionate, resulting in continued financial losses for DISCOMs. In our next infographic, we will dissect ACS and ARR to understand the reasons behind the ACS-ARR gap trend in recent years. #theenergydashboard #powerinsights #powersector #powertrends #dataanalytics

We are excited to introduce ‘The Energy Dashboard’ - a dynamic and powerful platform that aggregates information and data from the power and allied sectors. Developed by the Power Foundation of India, this dashboard offers single-point access to comprehensive technical, economic, and financial information sourced from various official sources such as the Central Electricity Authority (CEA), Power Finance Corporation (PFC), Reserve Bank of India (RBI), Ministry of Statistics and Programme Implementation (MoSPI), and the Ministry of Coal. The Energy Dashboard is designed with a user-friendly interface, making it useful to professionals in the power sector and other users. It allows for the analysis of extensive datasets that cover the technical, economic, and financial aspects of the power sector. A key highlight of the Energy Dashboard is its Analytics section, which offers multidimensional analysis, by leveraging available data. This section transforms raw data into actionable insights, enabling users to think critically. It assists in identifying trends, comparing metrics, and understanding the underlying forces shaping the power sector. Additionally, the platform enables users to generate reports, visualize data through charts and graphs, and track parameters over time. This tool is crafted to facilitate data-driven decisions, keep users informed about sector dynamics, and offer a deeper understanding of the evolving power sector landscape. Explore the dashboard at: https://lnkd.in/gaFgvT84 We welcome your comments, inputs, and feedback. #theenergydashboard #powerinsights #powersector #dataanalytics #powertrends Sanjiv Sahai Arti Gupta Praveen K Singh Sambit Basu Anurag Bhagat Himanshu Chawla Ratan Shome Sudhir Kumar Thakur Nikita Gupta Oli Mitra Sunaina S. Shashwat Datta Dr. Jagannath Mallick Atul Singh Umakant Kolwar Mahendra Prajapati Bhanu Pachouri Pardeep Jindal Dhanraj Reddy

Efficient power distribution is critical for reliable delivery of electricity. However, the distribution sector has long faced challenges in operational performance. AT&C (Aggregate Technical & Commercial) loss is an important metric for assessing the operational performance of a Distribution Company (DISCOM). These losses are a function of two factors: (1) billing efficiency and (2) collection efficiency. AT&C Losses = 1 – (billing efficiency × collection efficiency). Billing Efficiency = Total Energy Billed to Consumers (kWh) / Total Energy Input (kWh) Collection Efficiency = Revenue Collected (In Rs.) / Billed Amount (In Rs.) At PFI, we have analyzed data from multiple sources to track key metrics of distribution business to understand interlinkages between operational & financial parameters. In the infographics given below, we will break down and understand the factors driving trends in DISCOMs AT&C losses over the last six years. During this period, the AT&C losses have decreased from 22.4% to 15.4% (fig 1). This decline in AT&C losses is a result of improvements in both billing & collection efficiency. ◾ The billing efficiency has increased from 82.7% in the financial year (FY) 2017-18 to 87% in FY 2022-23. ◾ The collection efficiency increased from 93.9% to 97.3% during the same period (see Figs. 2 and 3). The Improvement in billing efficiency is primarily driven by the replacement of defective meters, prevention of theft, & segregation of agriculture feeders. However, the increase in collection efficiency in FY 2021-22 & FY 2022-23 can be largely attributed to an increase in receipt of tariff subsidies. In these financial years, the subsidies received exceeded the subsidy billed (Fig. 4) suggesting that states have settled some of their outstanding subsidy arrears. The above indicates that the increased collection efficiency and consequential improvement in AT&C losses do not truly reflect improvement in DISCOM operations. To better assess the operational improvement, we at PFI have done analysis by pegging the collection efficiency to 93.9% (in FY 2018, highest where the subsidy received was less than the subsidy billed) to calculate AT&C losses for FY 2022 and FY 2023. Based on this approach, the AT&C losses work out to be ◾ For FY 2022: 19.2% as compared to the stated 16.2% ◾ For FY 2023: 18.3% as compared to the stated 15.4% (Fig. 5) Analyzing the above figures, it is evident that the improvement in AT&C in the last two years was due to the receipt of tariff subsidy arrears. For a sustained reduction in AT&C losses, implementation of the Revamped Distribution Sector Scheme will be critical. The Revamped Distribution Sector Scheme (RDSS) aims at improving the quality and reliability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector. Learn more >https://lnkd.in/gqnX5c3q #theenergydashboard #powerinsights #powersector

Power Foundation of India is looking to hire 'Senior Associate- Economics', to be part of its team. We offer a competitive salary, comprehensive benefits package, and a supportive work environment that fosters growth and development. Please visit https://lnkd.in/eRpFaqy6 to apply.

We are excited to introduce ‘The Energy Dashboard’ - a dynamic and powerful platform that aggregates information and data from the power and allied sectors. Developed by the Power Foundation of India, this dashboard offers single-point access to comprehensive technical, economic, and financial information sourced from various official sources such as the Central Electricity Authority (CEA), Power Finance Corporation (PFC), Reserve Bank of India (RBI), Ministry of Statistics and Programme Implementation (MoSPI), and the Ministry of Coal. The Energy Dashboard is designed with a user-friendly interface, making it useful to professionals in the power sector and other users. It allows for the analysis of extensive datasets that cover the technical, economic, and financial aspects of the power sector. A key highlight of the Energy Dashboard is its Analytics section, which offers multidimensional analysis, by leveraging available data. This section transforms raw data into actionable insights, enabling users to think critically. It assists in identifying trends, comparing metrics, and understanding the underlying forces shaping the power sector. Additionally, the platform enables users to generate reports, visualize data through charts and graphs, and track parameters over time. This tool is crafted to facilitate data-driven decisions, keep users informed about sector dynamics, and offer a deeper understanding of the evolving power sector landscape. Explore the dashboard at: https://lnkd.in/gaFgvT84 We welcome your comments, inputs, and feedback. #theenergydashboard #powerinsights #powersector #dataanalytics #powertrends Sanjiv Sahai Arti Gupta Praveen K Singh Sambit Basu Anurag Bhagat Himanshu Chawla Ratan Shome Sudhir Kumar Thakur Nikita Gupta Oli Mitra Sunaina S. Shashwat Datta Dr. Jagannath Mallick Atul Singh Umakant Kolwar Mahendra Prajapati Bhanu Pachouri Pardeep Jindal Dhanraj Reddy

Power Foundation of India is looking to hire 'Communication Associate', to be part of its team. If you are creative, passionate about your work and looking for an opportunity to grow your career, we invite you to apply for this position. We offer a competitive salary, comprehensive benefits package, and a supportive work environment that fosters growth and development. Please visit https://lnkd.in/eRpFaqy6 to apply.

Power Foundation of India is looking to hire 'Communication Associate', to be part of its team. If you are creative, passionate about your work and looking for an opportunity to grow your career, we invite you to apply for this position. We offer a competitive salary, comprehensive benefits package, and a supportive work environment that fosters growth and development. Please visit https://lnkd.in/eRpFaqy6 to apply.