El Niño: Weak wind, hydropower output may fuel coal burn at power plants till June 2027
BusinessLine 15 min ago·13 Nov 2026, 8:22 am
A persistent El Niño weather pattern is expected to weaken wind speeds and reduce rainfall through at least June 2027. This shift in weather conditions is likely to lower the output from wind and hydroelectric power plants, forcing the country to rely more heavily on coal-based generation to meet energy demands.
For investors, this scenario creates a favorable environment for thermal power companies. As renewable sources face output constraints, the increased reliance on coal-fired plants could lead to higher power generation volumes and potentially improved operational efficiency for coal-based utilities.
Investors should monitor the quarterly generation reports of thermal power firms to gauge how effectively they are capitalizing on this demand-supply gap. Keeping an eye on government policies regarding coal usage and power pricing will also be crucial for assessing the long-term impact on the sector.
Excerpt from BusinessLine
El Niño can alter weather patterns and generally leads to falling wind velocity and below-normal rains adversely impacting wind and hydro power generation India’s reliance on coal-fired power plants could rise in the next 6-7 months as the impact of El Niño effect, which led to lower wind and hydro power generation,…Read the original at BusinessLine
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- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
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