IEX, Tata Power, Torrent Power: Power stocks in focus today; here is why

Power stocks today: Shares of power companies such as IEX, Tata Power, Torrent Power, and NTPC were on investors' radar on Wednesday, April 3, after the government announced some major steps to meet the power demand during the summer season.

The Power Ministry has directed companies to review the undertaking of planned maintenance of 1.7 GW in April and 6 GW–9 GW in June. It has been decided that efforts are to be made to schedule or shift the planned outages of thermal units to the monsoon season, the government said in its press release on Tuesday. 

At 10.49 AM today, shares of IEX were trading at Rs 143.10 each, up 0.53 per cent; Tata Power shares were trading at Rs 411.80 apiece, up 0.71 per cent; shares of Torrent Power were trading at Rs 1479.45 per share, up 0.96 per and NTPC shares were trading at Rs 343.40 each, down 0.41 per cent on the BSE.

Why power stocks are in focus

On Tuesday, April 2, the Union Minister for Power and New and Renewable Energy, RK Singh, held a series of meetings, emphasising the need for ensuring zero load shedding during the summer season.

In a meeting conducted in the Ministry in the third week of March this year, it was emphasised that all stakeholders should conduct proper planning to avoid a situation in which one state has surplus electricity while another has power shortages.

After that, on April 2, another meeting was held by the ministry to review the power capacity status of all thermal power plants experiencing partial outages. As per the government, the amount of capacity available during partial outages has decreased, and actions have been proposed to further reduce it.

Besides scheduling the planned outages of thermal units for the monsoon season, capacity additions in coal, hydro, nuclear, solar, and wind would be monitored to expedite their commissioning, the ministry said.

In the April–June 2024 summer season, electricity demand is expected to go up by 260 GW, up from 243 GW in September last year. 

The government will also hold a meeting with gas-based power plants to review the operation of gas-based capacity during the summer season.

Surplus Power to be offered for sale in Energy Exchange

It was also stated that all thermal generating stations must provide their excess electricity in power exchanges, as required by the recently published guidelines. Compliance has been required to be reviewed regularly, with notifications issued for violations of instructions.

The electricity volume for the nine months of FY24 was 79.9 billion units, 13 per cent more as compared with the first nine months of FY23 at 70.7 billion units. In Q3FY24, the total volume increased by 17 per cent.