NTPC, Power Grid, BHEL share prices are trading near 52-week highs. Peak power shortages are here to stay say analysts.

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Power Grid Corporation of India while scaled 52 week highs on Wednesday, NTPC, Bharat Heavy Electricals Ltd with gains of 26-107% in last six months also are trading near 52-week highs scaled on Tuesday. Others prominet gainers include JSW Energy that with gains of more than 55% in last 6 months. The peak power demand in November remained buoyant.

Overall, power demand for November-23 grew 6% year-on-year to 120 billion units, according to data by Nuvama Institutional Equities. India’s November-23 peak power demand touched 204GW (giga watt) with no deficit compared to 240GW in September and 5% deficit in evening hours. Also read- Deepak Chemtex share price opens at 90% premium on BSE SME exchange As renewable capacities are rising, the focus and dependance on thermal power generation is likely to stay.

Also, though daytime demand is being supported by solar power production, evening demand is met by ramping up thermal Plant Load factors and the trend is likely to continue till renewable storage capacities come up which is four–five years away, say analysts. Analysts remain of the view that peak power shortages are likely to stay as power demand in the country is likely to continue growing led by both household and industrial segments. The capex being incurred by corporates will also contribute to a rise in demand.