Chennai, Dec 20 (IANS): There will be deceleration in India's demand for power in the second half of FY23 and the growth rate for the year will be about eight per cent, said Fitch Ratings.

According to the credit rating agency Fitch, the demand for power in India grew at 11.3 per cent year-on-year (YoY) during the first half of FY23 due to post pandemic rebound and a low base during 1HFY22.

Fitch Ratings expects India's power demand to grow by around eight in FY23 (FY22: 8.2 per cent).

The rating agency expects thermal power plants' average plant load factor to remain above 60 per cent in FY23 (1HFY23: 64.5 per cent), benefiting from continuing power demand growth.

Fitch Ratings expects improved domestic coal supply will support coal inventory at power plants and should moderate coal import growth from current high levels, although imports are expected to remain robust.

As per Fitch Ratings' estimates, generation companies' (gencos) receivable position to improve as distribution companies have started clearing their dues to gencos following imposition of the late payment surcharge rule by the central government.

"Renewable capacity addition is likely to soften in 2HFY23 (8.2MW: 1HFY23, 15.5MW: FY22) and we may see deferment in capacity additions due to high commodity prices, supply chain issues and higher import duties on solar modules and cells from April 2022," Fitch Ratings said.