Key Messages

National economic activities were hit hard by the pandemic, and the power sector was no exception. The sector deviated from the expected energy supply and peak power demand growth trajectory during the pandemic years, and is now on the path of recovery.

India’s power generation capacity, peak demand and energy consumption have been growing rapidly over the past five to six years, except in fiscal year 2021. Multiple factors, such as an increase in the number of electricity consumers, rural electrification, “24×7 power for all” programmes, increased power demand from agricultural and industrial sectors, electrification in the transportation sector, and greater usage of electronic appliances in day-to-day activities, have contributed to the overall increase in power demand. The growth is evident in data collected by the Power System Operation Corporation Limited (POSOCO) and Central Electricity Authority (CEA). The total energy supplied in fiscal year 2017 was 1,135 billion units (BU) compared to 1,396 BU in fiscal year 2022, an increase of 19per cent. This increase in energy requirement puts stress on the generation and transmission sectors to ensure reliable power supply to consumers.

Link to the article:

The impact of Covid-19 on India’s power demand