THE YEAR IN BRIEF
In FY2021, TSPL’s (Talwandi Sabo Power Limited) plant availability was 81% and Plant Load Factor (PLF) was 40%, primarily on account of COVID-19 related demand disruption in H1 FY2021.
THE YEAR IN BRIEF
In FY2021, TSPL’s (Talwandi Sabo Power Limited) plant availability was 81% and Plant Load Factor (PLF) was 40%, primarily on account of COVID-19 related demand disruption in H1 FY2021.
OCCUPATIONAL HEALTH & SAFETY
We reported 1 fatality at TSPL in FY2021. The accident was thoroughly investigated and learnings have been propagated across our employees, business partners and across the group.
We continue to strengthen the ’Visible Felt Leadership‘ through the on-ground presence of senior management, improvement in reporting across all risk and verification of on-ground critical controls. We also continue to build safety assisting infrastructure development through the construction of pedestrian pathways, dedicated route for bulkers, creation of secondary containment for hazardous chemicals and other infra development across sites.
ENVIRONMENT
One of the main environmental challenges for power plants is the management and recycling of fly ash. At all our operations, we have a managed to utilise more than 100% of generated fly ash and 60% in TSPL. The reduction in ash utilisation is due to COVID-19 related demand disruption and national/local lockdowns affecting traffic movement, particularly in H1.
TSPL has implemented all the recommendations given by M/s Golder associates for ash dyke. Additional review done by dyke designer and assurance was also taken from third party (M/s TSE) regarding ash dyke stability.
TSPL has recycled 18.5% of the water used. We are further working to sustain the recycled water percentage through measures planned during FY2022.
PRODUCTION PERFORMANCE
| Particulars | FY2021 | FY2020 | % change |
|---|---|---|---|
| Total power sales (MU) | 11,261 | 11,162 | 1 |
| Jharsuguda 600 MW | 2,835 | 776 | - |
| BALCO 300 MW* | 1,596 | 1,726 | (7) |
| MALCO# | - | - | - |
| HZL wind power | 351 | 437 | (20) |
| TSPL | 6,479 | 8,223 | (21) |
| TSPL – availability | 81% | 91% | - |
# continues to be under care and maintenance since 26 May 2017 due to low demand in Southern India.
* we have received an order dated 01 Jan 2019 from CSERC for Conversion of 300MW IPP to CPP w.e.f. 01 April 2017. During the Q4 FY2019, 184 units were sold externally from this plant.
OPERATIONS
During FY2020, power sales were 11,261 million units, 1% higher y-o-y. Power sales at TSPL were 6,479 million units with 81% availability in FY2021. At TSPL, the Power Purchase Agreement with the Punjab State Electricity Board compensates us based on the availability of the plant.
The 600 MW Jharsuguda power plant operated at a lower plant load factor (PLF) of 58% in FY2021.
The 300 MW BALCO IPP operated at a PLF of 66% in FY2021.
The MALCO plant continues to be under care and maintenance, effective from 26 May 2017, due to low demand in Southern India.
UNIT SALES AND COSTS
| Particulars | FY2021 | FY2020 | % change |
|---|---|---|---|
| Sales realisation (`/kWh)1 | 3.1 | 3.6 | (14) |
| Cost of production (`/kWh)1 | 2.3 | 2.5 | (8) |
| TSPL sales realisation (`/kWh)2 | 3.0 | 3.7 | (19) |
| TSPL cost of production (`/kWh)2 | 2.1 | 2.7 | (22) |
(1) Power generation excluding TSPL
(2) TSPL sales realisation and cost of production is considered above, based on availability declared during the respective period
Utilisation of generated fly ash at all operations
Power sales at TSPL in FY2021
Average power sale prices, excluding TSPL, decreased by 14% to `3.1 per kWh and the average generation cost was lower at `2.3 per kWh (FY2020: `2.5 per kWh), driven mainly by decrease in coal prices and improved linkage materialisation.
In FY2021, TSPL’s average sales price was lower at `3.0 per kWh (FY2020: `3.7 per kWh), and power generation cost was lower at `2.1 per kWh (FY2020: `2.7 per kWh).
FINANCIAL PERFORMANCE
(` crore, unless stated)
| Particulars | FY2021 | FY2020 | % change |
|---|---|---|---|
| Revenue | 5,375 | 5,860 | (8) |
| EBITDA | 1,407 | 1,649 | (15) |
| EBITDA margin | 26% | 28% | - |
*Excluding one-offs
EBITDA for the year was 15% lower y-o-y at `1,407 crore mainly due to low capacity charges as PPA at TSPL, BALCO and Zinc India and lower realisation at TSPL, partially offset by increase in power sales at Aluminium business.
STRATEGIC PRIORIES & OUTLOOK
During FY2022, we will remain focused on maintaining the plant availability of TSPL and achieving higher plant load factors at the BALCO and Jharsuguda IPPs.
Our focus and priorities will be to:
