NEW DELHI: Power consumption trends have been showing steady improvement over the past few months, with the month of December being the fourth month in a row that India’s electricity demand has registered year-on-year growth. The upward rise has been driven by the bounce back in economic activity after lockdowns began to ease in May.
According to data from the Union power ministry, December’s recorded power consumption was 6.1 per cent higher than December 2019 at 107.3 billion units (BU). Power Secretary S N Sahai had noted last week that all-India demand for power had touched an all-time high on December 30 at 1,82,888 MW (megawatts). The previous high had been recorded on May 30, 2019.
Power consumption had tanked in March after the Covid-19 pandemic took out most industrial activity, with demand contracting by 8.7 per cent in March, 23.2 per cent in April, 14.9 per cent in May, 10.9 per cent in June, 3.7 per cent in July, and 1.7 per cent in August. But the easing of lockdowns in May began a recovery and, by September 2020, year-on-year power consumption growth was back in the positive zone at 4.4 per cent.
The festive season boost also pushed consumption growth up to over 11 per cent in October. However, an early onset of winter and the end of the festive season had resulted in a drop in growth in November, raising concerns whether the growth trend may not maintain its momentum.But, with December consumption growth improving again, officials say the trend should only stabilise going forward.
Negative outlook
Stabilising or improving cash flows amid power demand recovery, the gradual pace of regulatory change and manageable transition to a low carbon economy underpin Moody’s Investors Service’s stable outlook for the Asia Pacific power sector in 2021.