By Rajat Mishra
Power demand is expected to grow at a healthy rate of 6-7% on year in the fourth quarter of the current fiscal, owing to anticipated cold waves across the parts of the country and as well as the healthy economic activity.
According to Crisil, the electricity demand is expected to grow at a decadal high of 9-10% for the full fiscal vis-a-vis 8.2% in 2021-22.
In order to fulfil the rising demand of electricity, the power companies are resorting to the short-term power market. The share of the short-term power market in overall generation increased to 6.4% in the third quarter of the current fiscal, which was 5.2% in the second quarter — well above the long average of 4.6% over 69 months, Crisil said.
Overall generation declined sequentially in the quarter, with the combined output from hydro and wind plunging 50% owing to seasonality issues. However,in April 2022, India’s peak power demand touched a record high of 216 GW, 6% higher than the last year, as several regions in the north reeled under a severe heatwave. In December, peak demand rose once again by a sharp 12% on year and 9% on-month to 206 GW, this time because of increased heating requirement following the onset of winter as well as continued momentum in manufacturing activity, which rose to a 25-month high during the month, as signalled by the Purchasing Managers Index.
A few months ago, power secretary Alok Kumar said that the government will take all possible measures to meet the 230 gigawatt (GW) single-day peak demand expected in April 2023.
In order to avert power crisis in the summers, the Union ministry of power has asked all power-generating companies to import coal up to 6% of their total requirement. Though coal production has increased in Q4 of the current financial year, the power ministry said that is not enough to meet the unprecedented increase in demand for electricity.