Recovery in energy demand to continue despite COVID-19 led temporary blip: India Ratings

The all-India energy demand is likely to have declined in May 2021 on a month-on-month basis despite the peak summer season and will remain below pre-pandemic levels due to continuation of COVID 19-led restrictions imposed by states, according to India Ratings and Research.

“In the first 25 days of May 2021, the all-India energy demand was 88.8 billion units compared to 102.6 billion units in May 2020 and 120.7 billion units in May 2019,” the firm said in a report. It added energy demand is expected to start recovering from June 2021 as the states gradually lift restrictions..

India’s electricity generation increased 42.5 per cent year on year (yoy) to 115.5 billion units in April 2021 supported by 55.4 per cent growth in thermal generation, although hydro generation fell 18.4 per cent yoy.

Electricity generation from renewable sources increased 17.9 per cent to 11.7 billion units in April 2021, with solar generation increasing 41.5 per cent.

Coal production by Coal India Limited saw a marginal improvement of 3.8 per cent yoy to 41.9 million tonne in April 2021, after falling for three consecutive months (March 2021: down 3.8 per cent; February 2021: down 6.6 per cent; January 2021: down 4.1 per cent).