Power demand eases amid cooling temperatures
PremiumThe maximum power demand met on 22 May, Sunday, stood at 183 GW, way below the highest demand met of 207 MW in April-end, according to data from Power System Operation Corporation Ltd
NEW DELHI : The power crisis seems to have eased for now with demand falling amid cooling temperatures and rains in several parts of the country.
The maximum power demand met on 22 May, Sunday, stood at 183 GW, way below the highest demand met of 207 MW in April-end, according to data from Power System Operation Corporation Ltd. A week ago, the maximum power demand was 198.04 GW.
Further, the market clearing price in the day-ahead market on the Indian Energy Exchange stood at ₹3.54 per Kwh on Monday, down from 5.9 per Kwh a week ago (19 May), indicating an ease in supplies on the exchange. During the last week of April, the price in the day-ahead market stood at around the the upper limit of ₹12 per KwH.
Girishkumar Kadam, Senior Vice-President and Co-Group Head, ICRA noted that the recent cooling of temperatures have resulted in the lowering of power demand and the fall in prices on power exchanges also indicate the ease in the market.
Temperatures have been falling since the pre-monsoon showers in Kerala and rainfall due to Cyclone Asani in coastal states including Odisha and Andhra Pradesh a week ago.
Further, temperature drastically fell in Delhi-NCR on Monday morning due to thunderstorms and rains. “Today, just from 5:40 am till 7 am, the temperature fell by 11 degrees Celsius, from 29 degrees Celsius to 18 degrees Celsius," said India Meteorological Department (IMD).
According to the IMD, thundershowers, moderate intensity rain and gusty winds with speed of 60-90 Km/h would continue to occur over Delhi-NCR and its adjoining areas. The wet spell over Northwest and East region during 22-24th May might have reached peak intensity on 23 May, according to the IMD.
The maximum temperature could remain below 40 degrees till May 26, and is likely to rise to 41 degree Celsius by May 28. The heatwave conditions are likely to remain suppressed till May 29 or 30, on account of the active western disturbance that brought rainfall to northwest India this morning.
Given the projection of continuing rains and thundershower, power demand is also expected to remain low in the next few days.
Along with cooling temperatures, steps by the Centre to improve coal supply to power plants also have supported the market, analysts said.
Earlier this month, the power ministry asked all imported coal based plants to start operating at 100% capacity, saying these plants need working capital to buy coal and start generating power in order to restart their operations.
The ministry had also mandated blending of 10% imported coal by power plants to meet soaring demand. Power demand spiked last month leading to fears of a crisis situation with low availability of coal and railway rakes to transport the mineral to plants.
According data from the Central Electricity Authority, the 173 power plants under its ambit have a total coal stock of 20.97 million tonne, 32% of the required 66.49 million tonne.