Pandemic causes India’s first drop in annual power demand in 15 years

India’s annual electricity demand contracted for the first time in no less than 15 years, as one of many world’s strictest lockdowns slashed power consumption through the early months of the 12 months ended March.

Demand from state distribution utilities dropped 1.1%, marking the first such decline in information going again to 2006, knowledge from the Central Electricity Authority present. Peak demand through the 12 months rose to 190.2 gigawatts, about half of the nation’s put in capability, from nearly 184 gigawatts in the prior 12 months.

Consumption fell as companies, places of work and factories have been shuttered after a nationwide lockdown was imposed in March final 12 months. Still, power demand has rebounded as India turned one of many few main economies to submit progress in the final quarter of 2020, helped by a lift in authorities spending and the reopening of the economic system. Strong demand is essential for India to attract buyers to its power industry because it seeks recent capital for its clean-energy transition.

“We are seeing a strong recovery in electricity demand driven by industries and that trend should continue,” mentioned Rupesh Sankhe, vp at Elara Capital India Pvt. in Mumbai. “The fresh surge in virus cases might pose some temporary risks, but the longer-term demand story is intact.”

Electricity requirement grew in the final seven months of the fiscal 12 months, with complete requirement through the interval rising 7% from a 12 months earlier, in response to the CEA. Sankhe expects electrical energy requirement to rise no less than 10% in the 12 months that started in April, helped by a low base.