The slight improvement in power demand in May is seen due to industries and businesses resuming operations and the onset of summer leading to increased domestic demand.

The power demand in India has started to pick up as the Modi government gradually eased restrictions on economic activity, however, the current level of electricity usage is still much below the normal levels. Power demand in May fell 14.16 per cent to 103.02 billion units (BU) compared to 120.02 BU a year ago, though the fall is lower than 22.65 per cent in April when the economic activity was almost at a standstill. The slight improvement in power demand in May is seen due to industries and businesses resuming operations and the onset of summer leading to increased domestic demand.

Peak power demand in May improved from April as it was 8.82 per cent less than last year, compared to 25 per cent fall in April. The peak power demand was 166.42 GW in May while it was 132.77 GW in April, according to the data provided by power ministry. The peak power demand was 166.42 GW in May while it was 132.77 GW in April. Apart from household demand for power, industrial and commercial activities hold a large share of the overall power demand. After the lockdown called by the centre from March 25, industrial and commercial activities took a sudden brake and the power demand nosedived.

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Only After April 20, when the government lifted some restrictions on economic activity, the power demand started to rise. Further easing of restrictions in May helped the power consumption to move towards normalcy, however, the uncertainty and a complete lockdown of the market place still did not allow the power demand to touch the year ago levels.  Meanwhile, India has entered Unlock Phase 1 from today and the movement restrictions outside containment zones have also been lifted. Restrictions on malls, restaurants, etc are also to be lifted in a phased manner now, which may likely take the power demand to normal levels in June.