Electricity generation companies (GENCOs) are currently in the throes of a transition. There is ample availability of renewable energy (RE), and that too at a price cheaper than that charged by conventional power plants. Therefore, power demand from distribution companies (DISCOMs) is shifting from coal-based thermal power plants to RE power plants. Additionally, DISCOMs are signing power purchase agreements (PPAs) with upcoming low-cost RE generators to reduce their average power purchase cost leading to the backing-down or shutting down of thermal assets.
