According to a report released on Thursday (December 5), the country’s electricity demand declined by about 0.3 percent to 123 billion units in November due to low temperatures. The demand in the same period last year was 124 billion units. This decline comes after a monthly decline of about 6 percent in October. “Severe cold in Madhya Pradesh led to an 11 per cent decline in electricity demand, while in Rajasthan, demand fell by 7 per cent due to cold,” the CRISIL Intelligence report said.
Meanwhile, electricity generation in November rose 0.5 percent to 134 billion units compared to last year. Electricity production from renewable energy is estimated to increase by 17 percent year-on-year. This will be the eighth consecutive month in the current financial year when it will increase. The main reason for this increase is said to be the addition of new capacity.
On the other hand, coal-fired power generation has declined for the second time this quarter. Because of this, the share of coal in total electricity generation has declined to 72 percent, which was 75 percent last year. From this it can be estimated how easy or difficult it is to increase or decrease production according to the demand for electricity. According to the report, as of November 30, 54 million tonnes of coal was available with thermal power plants and the coal stock was for 18 days. Last year at this time the stock was for 14 days. This increase in the stock has been seen when electricity consumption declined by 5.5 percent year-on-year in November. Whereas during April-October there was a decline of 3.17 percent in consumption.
The report said the increase in electricity generation from renewable energy points to a decline in demand for thermal coal. The report further said, “We estimate power demand to grow 1-3 per cent year-on-year to 1,715-1,725 billion units in the current financial year. This growth will be sustained underpinned by stable economic performance and rising disposable incomes. However, power demand growth may remain subdued due to weather uncertainties.” In the report, the country’s gross domestic product (GDP) growth rate has been estimated at 7 percent in the current financial year.
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