Power consumption in August returns to nearly same as last year; activity speeds up after dismal Q1

The resurgence in the power usage comes after a drastic drop in consumption in the lockdown months as economic activities had come to a grinding halt due to nationwide lockdown.

With the unlock phase at full swing and with economic activities gathering momentum again, the power slump has narrowed down in August, and consumption has reached nearly the same levels as that in the same month a year ago. The resurgence in the power usage comes after a drastic drop in consumption in the lockdown months as economic activities had come to a grinding halt due to nationwide lockdown. Earlier this week, India reported a 23.9% on-year fall in fiscal first quarter GDP (April-June). The increase in power consumption, along with other demand and consumption indicators, may show a potential economic revival in the ongoing Q2 FY 2020-21.

The slump in overall power consumption has narrowed to just 0.85% in August at 110.57 billion units (BU) amid a considerable rise in economic activities, raising hopes that power consumption will surpass normal level in September. Power consumption in August last year was at 111.52 BU, as per the data by the power ministry.

While establishments were under complete lockdown from March-end to June starting, the government had started to ease down lockdown restrictions to revive economic activities. As a result, the power consumption has improved especially in the month of August. The lockdown to contain COVID-19 was imposed on March 25 which affected commercial and industrial electricity demand as well as consumption.

A progression from June, July

In July, the slump in power consumption had narrowed to 3.6% at 112.24 BU as compared to 116.48 BU in the same month last year. On the other hand, the gap was even wider in June with power consumption declined by 10.93% to 105.08 BU, as compared to 117.98 BU in the same month last year. The May and April figures provide an even dismal figure. Power consumption in the country was down by 14.86% in May and 23.21% April.

Even while the power slump has narrowed down in August, the peak power demand met, ie, the highest energy supply during a day across the country, was at 167.49 GW in August. The same is down by 5.65 % from 177.52 GW recorded in the same month last year.