India’s power demand to rise 6 per cent in FY22

Demand for electricity in India is expected to increase by 6 per cent in 2021-22 compared to the previous fiscal year, according to ICRA. The rating agency has also forecasted a 17-18 GW increase in power generation capacity for the current fiscal. Additionally, ICRA expects all-India power generation capacity additions to rebound to 17-18 GW this year, up 45 per cent YoY from 12.8 GW in 2020-21, with the renewable energy segment leading the way with a strong pipeline of 38 GW projects under development. Over the next five years, the renewable energy segment will continue to be the primary driver of capacity addition, accounting for more than 60 per cent of total capacity addition.