Power consumption in India has decreased as monsoon coverage has improved, particularly in the southern regions, according to a report released on Friday.
A Crisil analysis estimates that increasing power consumption in northern regions caused the country’s power demand to increase by 7% (year over year) in July, to 150 billion units (BUs).
“Nevertheless, demand moderated in other regions, minus the 16 percent on-year surge in power demand in the north,” the report stated.
In the south, demand for power increased by 4%, while in the west, it decreased by just 1%.
The research stated that “the spatial distribution of the monsoon can explain largely the variance in demand in the north compared to the other regions.”
Maharashtra and Gujarat experienced 63% and 45% more rainfall in July, respectively, than usual.
Rainfall in Karnataka, Telangana, and Andhra Pradesh exceeded average levels by 60%, 33%, and 28%, respectively.
The increase in demand was more than adequately offset by the expected 5% rise in power generation to 156 BUs in July.
According to the Crisil study, “in fact, excluding hydropower, coal, nuclear, and renewable energy generation increased during the month at 4%, 17%, and 12% (on-year), respectively.”
The report also stated that volume traded on the real-time market (RTM) was anticipated to have climbed 34% year over year in July, in keeping with the on-year rise in power consumption. This suggests the necessity for prompt supply during times of sudden high-power requirements.
The International Energy Agency (IEA) predicts that this year, India’s electricity demand could increase by 8%.
To meet the rising demand for power, the nation will need to invest a minimum of Rs 6.67 lakh crore in thermal capacity by 2031–2022.
