New Delhi: Peak power demand in India is estimated to have declined to 217 GW in August, compared with 238 GW a year earlier, which was the second-highest level recorded in fiscal 2024, a report showed on Tuesday.
According to a Crisil report, electricity demand in the country declined 5.3 percent (year-on-year) to 144 billion units (BUs) in August, even as the country received 7 percent excess rainfall during the month.
This follows a 6.7 percent on-year rise in electricity demand in July. Consequently, demand grew 7 percent in the April-August period, the report mentioned.
The decline in regional power demand closely follows the rainfall pattern and state-specific consumer preferences.
Power generation is estimated to have declined 3 percent to 155 BUs in August 2024. Coal and renewable energy production contracted 3 percent and 13 percent, respectively, during the month, the report showed.
In contrast, hydropower generation surged 7.6 per cent after two consecutive months of decline as many states received ample rainfall.
“Demand moderated across India, with the western and northern regions experiencing on-year declines of 10 and 6 percent, respectively.
Similarly, the weighted average market clearing price in the real-time market declined 45 percent year over year to Rs 3.3 per unit in August 2024 from Rs 6 per unit a year earlier.
With the southwest monsoon covering more parts of the country in August, the water level in 31 reservoirs and hydroelectric projects ticked up 1 percent over a year earlier.
Thus, the report noted that the share of coal and renewable energy in power production increased marginally year over year, while that of hydropower grew to 15 percent from 13 percent.
As of August 30, thermal power plants had 40 million tonnes (MT) of coal compared with 30 MT a year earlier, and the coal stock was estimated to last 14 days as against 10 days in August 2023.
The report projected power demand to grow 6.5-7.5 percent in FY25 owing to weather events, including severe and prolonged heat waves in the first quarter and insufficient rainfall in July in northern India.
For more updates Subscribe to Media Eye News
–IANS
