Thermal plant load factor or capacity utilisation is expected to remain healthy at 70 per cent in FY2025 on power demand growth of 6 per cent, ICRA said on Thursday.
ICRA's outlook for the thermal power segment is "Stable", following the improvement in the thermal plant load factor (PLF) and healthy demand growth, thereby improving visibility on signing of new power purchase agreements (PPAs), an ICRA statement said.
Also, it stated that the implementation of the Late Payment Surcharge (LPS) scheme enabled an improvement in payment discipline from state distribution utilities (discoms) to power generation companies from August 2022.
However, it stated that ICRA's outlook for the power distribution segment remains "Negative" amid limited tariff hikes and continued loss-making operations.
According to the statement, ICRA projects the all-India thermal PLF level to rise marginally to 70 per cent in FY2025, from 69 per cent in FY2024, led by the growth in electricity demand and limited
