Power consumption estimated to grow 10% this fiscal: Report

17 Jan 2023 , 10:23 AM

Electricity consumption in the country is expected to rise at a decadal high of 9-10% yoy in the current fiscal, according to a report.

According to the report by Crisil Market Intelligence and Analytics, ‘We expect demand to grow a healthy 6-7 per cent on-year in the fourth quarter owing to anticipated severe cold waves parts of the country as well as healthy economic activity. For the full fiscal, electricity consumption is slated to grow at a decadal high of 9-10 per cent vis-à-vis 8.2 per cent in fiscal 2022,’

In December, peak demand surged once again by a sharp 12% yoy and 9% mom to 206 GW, led by increased heating requirement with the onset of winter as well as continued momentum in manufacturing activity, which rose to a 25-month high during the month.

Accordingly, India’s peak power demand touched a record high of 216 GW in April 2022, up 6 per cent on-year, as many regions in the North reeled under a severe heatwave. The surge in demand was also contributed by industrial and manufacturing activities.

Generation in the Q3FY2023 was directed affected by seasonally lower output from renewable sources, leaving costly thermal power to service incremental demand.

The government is expecting a peak demand of 230 GW in April 2023, the report said.

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