Power consumption notes 8.2% growth in May 2021

According to data by the Ministry of Power, power consumption in the country increased 8.2% year-on-year (y-o-y) in May to 110.47 billion units, indicating a slow recovery in commercial and industrial demand for electricity. Experts believe that the slower rate of recovery in industrial demand for electricity in May can be attributed to local lockdown restrictions imposed by states to combat the spread of coronavirus during the second wave of the pandemic. The two cyclones that hit the country's east and west coasts in May resulted in power outages and lower consumption due to rains in different areas of the country during the peak summer season, industry experts told the media. They are optimistic that commercial and industrial power consumption and demand will increase in the coming days, with many states relaxing local lockdown restrictions imposed to combat the second wave of coronavirus after the number of daily new positive Covid-19 cases has begun to decline. Due to the impact of the lockdown imposed to curb the spread of Covid-19, power consumption in May last year was 102.08 billion units, with a y-o-y decrease of nearly 15% in May 2020. In May of this year, power consumption was 120.02 billion units. As a result of the lower base in 2020, power consumption in May this year did not recover as quickly as it should have. Last year, the government declared a state of emergency on 25 March 2020, to halt the spread of the coronavirus. The lockdown was gradually lifted, but it had a negative impact on economic and commercial activities, resulting in lower commercial and industrial demand for electricity in the country. In April 2021, power consumption increased by nearly 40% year on year to 118.08 billion units. Power consumption in April 2020, fell to 84.55 billion units from 110.11 billion units in the same month in 2019, owing primarily to fewer economic activities following the government's imposition of a lockdown in the last week of March 2020, to contain the spread of deadly Covid-19. Peak power demand met or the highest power supply in a day fell to 132.73 GW in April last year from 176.81 GW in the same month last year, demonstrating the impact of the lockdown on economic activity. However, peak power demand in 2021 increased to 182.55 GW in April. Peak power demand met or the highest supply in a day reached 168.78 GW in May this year, representing a 1.5% increase over the 166.22 GW (peak met) recorded in the same month in 2020. In February of this year, power consumption was 103.25 billion units, compared to 103.81 billion units the previous year. However, 2020 was a leap year. In March of this year, power consumption increased by nearly 22% to 120.63 billion units, compared to 98.95 billion units in the same month of 2020. After a six-month hiatus, power consumption increased by 4.6% year on year in September 2020 and 11.6% in October 2020. Power consumption growth slowed to 3.12% in November 2020, owing primarily to the early onset of winters. In December 2020, power consumption increased by 4.5%, while it increased by 4.4% in January 2021. Image Source Also read: PGCIL to invest Rs 22.20 bn in power transmission network Also read: Growth in power consumption slumps