Power demand rises 34 per cent from April lows due to rising temperature

NEW DELHI: The gradual resumption of industrial activity following widespread lockdown relaxations is starting to show on India’s total power demand. Coupled with a robust boost from soaring temperatures in the North, total power demand has begun to creep steadily toward pre-lockdown levels.

Data from state-run power despatch unit Power System Operation Corporation shows, power demand met on May 24, 2020 stood at 3,656 million units (MU). This is just 27 MU shy of the 3,683 MU supplied on February 29, when no lockdown was in operation. In fact, demand has been steadily moving toward levels seen last year, when 4,091 MU was consumed during May 24, 2019.

These numbers stand in contrast to the near halving of total power demand witnessed in the middle of April, when the shutting down of most industrial and railways activity saw daily demand ranging between 2,700-2,800 MU.

However, several relaxations allowing industries in many areas to begin operating led to an upswing in power demand. Compared to the 2,717 MU consumed on April 11 this year, demand has grown by over 34 per cent as of last Sunday. Commercial and industrial operations account for over 52 per cent of total power demand in India, with households and farm operations contributing 24 and 18 per cent respectively.

According to power sector analysts and discom executives, while industrial activity has begun to chug along, power demand has also been helped by the ongoing heat wave in the northern parts of India, though a significant dent has been made in total demand due to the devastation caused by Cyclone Amphan in the east.A substantial boost in demand is also being generated by the gradual resumption of railway services, noted a discom official requesting anonymity.

‘Thermal coal imports for blending to the halted’
State-run Coal India (CIL) has written to its subsidiaries that the government has decided to do away with the import of coal for blending purposes by domestic coal-based power plants. to zero level in this fiscal”. The government has also asked CIL to enter into a pact with power generation companies for domestic supply of coal.