NHPC's Q2 performance is expected to be better than Q1, says CMD Rajeev Kumar Vishnoi

State-owned power producer NHPC Ltd on Monday (August 14) said the company's second-quarter performance is expected to be better than the first one, indicating a positive trajectory for the firm.

In an exclusive interview with CNBC-TV18, Rajeev Kumar Vishnoi, the chairman and managing director (CMD), said, "The company expects to generate more power in the current quarter."

Vishnoi said the amount of energy that was generated in the last quarter, the company has been able to maintain its performance compared to the corresponding quarter in the last financial year.

Despite challenges, the company has managed to uphold its energy production levels from the previous quarter, aligning its performance with the corresponding period of the last financial year. This steady performance sets the stage for an even more robust showing in the second quarter of FY24.

An intriguing development on NHPC's horizon is the Dibang Project, which is expected to be operational between the years 2031 and 2032. This venture marks a significant step forward in NHPC's commitment to expanding India's hydropower capacity, contributing to the nation's energy security and sustainability goals.

Hydropower has always been a cornerstone of NHPC's endeavors, and Vishnoi highlighted that the Plant Load Factor (PLF) for hydropower projects typically falls within the range of 40-50 percent.

Interestingly, NHPC observes higher PLFs during the rainy season as opposed to off-season periods. This phenomenon underscores the seasonal dynamics inherent in hydropower generation and emphasizes NHPC's adaptive strategies.

Further emphasising NHPC's dedication to its projects, Vishnoi confirmed that the Subansiri Lower Project remains on track for commissioning by December 2023, with no significant uncertainties on the horizon.

Additionally, specific power purchase agreement (PPA) tariffs have been established for the Subansiri Lower Project, set at Rs 5.16 per unit and Rs 6 per unit for Parbati.

However, not all developments have proceeded without challenges. The commissioning timeline for the Parbati Project is now facing delays due to recent floods, highlighting the unpredictable nature of environmental factors in large-scale infrastructure projects.

NHPC, originally established in 1975 with the mandate to develop hydroelectric power in India, has progressively evolved its portfolio to include various renewable energy sources.

In addition to its core focus on hydropower, NHPC has ventured into solar, geothermal, tidal, and wind energy projects, solidifying its position as a comprehensive player in the sustainable energy sector.