Invited Speaker
![Dr. Alok K Tripathi](http://opensz.oss-cn-beijing.aliyuncs.com/Photo/34f56bf2171f4261b48ed22b05297e14.jpg)
Dr. Alok K Tripathi
NTPC Regional Learning Institute, IndiaSpeech Title: Major Factors affecting Capacity Utilisation of Thermal Power Plants in India, Future Outlook and Financial Impact
Abstract: Thermal power plants in India are operating at low Utilization Factors. The average national Utilization Factor has come down to 68.24 % in 2023-24 from the level of 77.5% in 2009-2010, registering a drop of about 9.3 %. There are many reasons behind such drop, including substantial addition of renewables in the grid. The situation is putting immense technical and financial pressure on thermal plants. The aim of this research is to find out what are the major factors affecting Capacity Utilisation Factor of thermal power plants, future outlook, how this situation is likely to impact Revenue and ROE of the thermal power plants, and finally suggest remedial measures. This issue needs immediate attention because, coal-based generation is likely to play a very critical role in the foreseeable future for meeting the rising power demand and for safe and stable operation of the grid. Until renewable energy and large-scale storage facilities are ready to takeover, both in terms of scale and affordability, the coal-based generation cannot simply be wished away. The findings are of interest to power plant developers, policymakers, lenders, academicians, researchers, and regulators. This research uses Factor Analysis and Hypothesis Testing to determine the major factors affecting Capacity Utilisation of Thermal Power Plants. Multiple Hierarchical Regression and Partial Least Square (PLS) Regression techniques have been used for projection of Capacity Utilisation Factor for the next five years. Finally, the likely impact of changes in Capacity Utilisation Factor on Revenue and ROE has been worked out based on the two-part electricity tariff system prevalent in India. Recommendations have been validated using Delphi.