Mint Explainer: Why is India's power demand scaling new highs?
Indian Energy Exchange (IEX) touched ₹7.14 per kilowatt hour (kWh or unit) up from ₹6.04 per unit from last week. Prices, intermittently, have been hitting the ₹10 per unit price cap. A.
Power demand is expected to remain high for the next couple of month, as rainfall is seen weak due to the El Nino effect. The IMD earlier this month had said that monsoon rains during the second half of the June-September season is expected below normal at 94-99% of the long period average. In August, rains are seen at 90-94% of the long period average.
August and September typically account for 46% of the overall monsoon rains. A. The Centre has taken a number of steps this year in anticipation of record power demand.
In February, the union power ministry had directed power generation companies to blend 6% imported coal till September to avoid any kind of crisis due to lack of domestic coal. The power ministry, along with ministries of coal and railways, monitors and coordinates on a regular basis, for increasing in the production and dispatch of coal. The ministry has also directed all captive coal blocks to maximize their production.
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