Power generation increases 2% in June amid growing demand
New Delhi: Power generation in India rose 2.21% in June as demand scaled new highs during the month marked by soaring temperatures. Data from the Central Electricity Authority (CEA) showed power generation rose to 127.16 billion units or 127167.28 Gigawatt hour (Gwh) last month from 124.42 billion units a year earlier. Thermal power generation rose 3.39% to 109.20 billion units while hydro power generation increased 1.35% to 14.13 billion units.
A delay in the southwest monsoon and rising mercury fuelled a sharp rise in power demand last month. Peak power demand hit a record 223.235 GW on 9 June with a peak shortage of 189 MW. “Usually, the peak demand is reached in May; however, the unseasonal rains in that month kept the temperatures and the demand comparatively lower during that month.
Going ahead in July, the demand may ease with monsoon rains engulfing extensive parts of the country," said Vikram V., vice president and sector head - corporate ratings at ICRA. Regionwise, south and west India saw a 5.73% and 4% rise in power generation respectively in June, while north and east India clocked 0.36% and 1.37% growth. Power generation in the northeast fell 16.13%.
Meanwhile, with the monsoons setting in, power demand has dropped to less than 200 GW. Demand stood at 193.038 GW on 6 June with a peak shortage of 33 MW. Power demand is expected to grow 5% in FY24.
The projected growth rate is almost half that of the 9.6% increase last fiscal. In FY23, power demand received a boost from the resumption of economic activity and the low base effect of the covid-hit FY22 when economic activity was severely impacted. With an anticipated 5% growth, the all-India thermal plant load factor (PLF) is likely to improve to over 65% in
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