New Delhi: India’s energy needs are expected to improve in July 2021 as the second wave of Covid and the reopening of commercial facilities calm down, according to a report by India Ratings and Research (Ind-Ra).
According to the rating agency, demand continued to recover in June 2021 compared to the previous year. However, this will be below pre-pandemic levels due to the expansion of Covid-19 restrictions, particularly in the southern states.
“The southern states saw only a modest 1.9 percent year-over-year increase in energy demand in the first 20 days of June due to severe restrictions given the higher cases than the rest of India.”
“Overall, the total energy demand in India in the first 20 days of June was 74.4 billion units (June 2020: 69.7 billion units; May 2019: 79.6 billion units). Given the energy deficits that remain close to zero, Ind-Ra estimates electricity demand to increase by 7-7.5 percent year-on-year in June 2021. “
In May 2021, all India’s energy demand was 7.5 percent higher year-on-year to 110.4 billion units due to a lower base effect, but lower on a monthly basis due to the Covid-19 restrictions introduced by certain states during the month.
“The short-term electricity price on the Indian Energy Exchange fell to Rs 2.83 per kWh in May 2021 due to a short-term larger gap in the demand delivery of electricity of minus 4,641 MU.”
“Power generation rose 8 percent year-on-year to 103.96 billion units in May 2021, supported by thermal generation growth of 12.8 percent year-on-year. The generation of electricity from renewable sources rose by 10.3 percent to 14.1 billion units in May 2021, with both wind and solar energy generation increasing by 12.4 percent and 12.6 percent year-on-year. “