During the first fortnight of May this year (from May 1 to 14), peak power demand met or the highest supply in a day touched the highest level of 168.78 GW (on May 6, 2021) and recorded growth of over 15 per cent over 146.54 GW (peak met) recorded in the same period in 2020 (on May 13, 2020).
The power consumption in April grew nearly 40 per cent to 118.08 BU. Power consumption in April 2020 had dropped to 84.55 BU from 110.11 BU in the same month in 2019, mainly because of fewer economic activities following the imposition of lockdown by the government in the last week of March 2020 to contain the spread of deadly COVID-19.
The power consumption also fell in May 2020 to 102.08 BU from 120.02 BU in May 2019.
Similarly, peak power demand met or the highest power supply in a day also slumped to 132.73 GW in April last year from 176.81 GW in the same month in 2019, showing the impact of lockdown on economic activities.
The fewer economic activities also resulted in a fall of peak power demand in May 2020 to 166.22 GW from 182.53 GW in May 2019.
Talking to, Davinder Sandhu, Advisor Primus Partners said, “Energy is derived demand, and with onset of summer and the productive pre-monsoon cycle of the Indian economy, an uptick is always expected.”
Sandhu who is also a former Advisor at World Bank said, “Both energy demand and supply have risen by 25-40 per cent over March-May 2021, with thermal PLFs (plant load factor or capacity utilisation) rising to 75 per cent and more, after many quarters. This is aided by the opening of the economy in Q1 (January-March 2021), with rising economic output as well as sharp uptick in exports.”
The second wave of lockdowns will certainly impact economic activity, and in turn, energy demand. The larger than usual increase in part is attributed to lower base, and as well as to the pent up demand being executed now, he added.
After a gap of six months, power consumption had recorded a 4.6 per cent year-on-year growth in September 2020 and 11.6 per cent in October 2020.
In November 2020, the power consumption growth slowed to 3.12 per cent, mainly due to the early onset of winters. In December 2020, power consumption grew by 4.5 per cent while it was up 4.4 per cent in January 2021.
Power consumption in February this year recorded at 103.25 BU compared to 103.81 BU last year. But 2020 was a leap year. In March this year, the power consumption grew nearly 22 per cent to 120.63 BU compared to 98.95 BU in the same month of 2020.