Power demand in India shrinks in March thanks to unexpected rains

14 Apr 2023 CW Team

The Indian Meteorological Department (IMD) reports that India received 37.6 mm of rain in March, the most in the last three years. India received 16.7 mm of rain in March 2021 and 44.7 mm in March 2022.

Peak demand in March, however, was 3% higher, at 209 GW, compared to 202 in March 2022. In addition, power prices fell by 33% year on year in March. But, in January and February, there was a sharp uptick in the prices owing to the cold wave.

"The fourth quarter of fiscal 2023 saw a 13% increase in day-ahead market (DAM) prices over the same period last year," CRISIL said in a statement. Lower power generation relieved strain on India's hydro and thermal power generation.

"Hydro generation fell 27% in March 2023, and its share of overall generation fell 167 basis points (bps), preventing water levels in hydro plants from falling further," it said. The quarterly figures, however, remained elevated due to higher demand in January and February.

Power demand increased by 7% year on year in Q4FY23, owing primarily to increases of 13.7% and 10% in January and February, respectively, due to higher heating requirements in winter months and robust economic activity. Increased winter demand also resulted in 13% and 9% higher generation across all fuels in January and February, respectively.

Power demand is expected to increase by 4% in the current quarter, which ends in June 2023. "Soaring temperatures and resilient economic activity are expected to keep power demand growing," according to CRISIL.

"Peak electricity demand should reach a record high in FY24, given predictions of heat waves that will increase usage of air conditioners, fans, and refrigeration units." India's peak power demand is expected to grow to 230 GW in the first quarter of fiscal 2024, rising 6.5 per cent YoY," it added.

Also Read
Govt issues guidelines for development of pumped storage projects
Torrent Power emerges as lowest bidder for power supply contract

Power demand in India fell 1.3 percent in March due to unprecedented rainfall, according to rating agency CRISIL on Tuesday. Because of the drop in demand, power generation fell by 7% year on year (YoY) in the month. The Indian Meteorological Department (IMD) reports that India received 37.6 mm of rain in March, the most in the last three years. India received 16.7 mm of rain in March 2021 and 44.7 mm in March 2022. Peak demand in March, however, was 3% higher, at 209 GW, compared to 202 in March 2022. In addition, power prices fell by 33% year on year in March. But, in January and February, there was a sharp uptick in the prices owing to the cold wave. The fourth quarter of fiscal 2023 saw a 13% increase in day-ahead market (DAM) prices over the same period last year, CRISIL said in a statement. Lower power generation relieved strain on India's hydro and thermal power generation. Hydro generation fell 27% in March 2023, and its share of overall generation fell 167 basis points (bps), preventing water levels in hydro plants from falling further, it said. The quarterly figures, however, remained elevated due to higher demand in January and February. Power demand increased by 7% year on year in Q4FY23, owing primarily to increases of 13.7% and 10% in January and February, respectively, due to higher heating requirements in winter months and robust economic activity. Increased winter demand also resulted in 13% and 9% higher generation across all fuels in January and February, respectively. Power demand is expected to increase by 4% in the current quarter, which ends in June 2023. Soaring temperatures and resilient economic activity are expected to keep power demand growing, according to CRISIL. Peak electricity demand should reach a record high in FY24, given predictions of heat waves that will increase usage of air conditioners, fans, and refrigeration units. India's peak power demand is expected to grow to 230 GW in the first quarter of fiscal 2024, rising 6.5 per cent YoY, it added. Also Read Govt issues guidelines for development of pumped storage projects Torrent Power emerges as lowest bidder for power supply contract

Infrastructure Energy

19 Sep 2025

J&K CM Rules Out Power Privatisation, Focuses on Sector Reform

Jammu and Kashmir Chief Minister Omar Abdullah has dismissed speculation regarding privatisation of electricity in the Union Territory, emphasising that his priority is to strengthen and reform the power sector.“We are not discussing privatisation. By reducing losses, improving billing efficiency, and enhancing revenue, there will be no need for it. My vision is to strengthen and reform the power sector in J&K,” Abdullah stated.He addressed the gathering at the 58th Engineers’ Day at SKICC on Monday evening, an event honouring Bharat Ratna Sir M Visvesvaraya for his pioneering contri..

Infrastructure Urban

19 Sep 2025

Mumbai’s Sassoon Dock to Get Tech-Driven Modernisation with Finland

The Maharashtra government, in collaboration with Finland, will modernise Mumbai’s historic Sassoon Dock using advanced technology, state minister Nitesh Rane announced on Wednesday.Rane met a delegation of Finnish officials and representatives of Finnish companies at the dock to discuss strategic plans for upgrading the facility in south Mumbai, according to an official statement.Built in the 19th century, Sassoon Dock is one of Mumbai’s oldest and busiest fishing harbours. Operations currently exceed its original capacity, raising concerns over hygiene, odour, fish handling standards, an..

Infrastructure Energy

19 Sep 2025

Agarwal Industrial Wins Rs 3.3 Billion IOCL Bitumen Tender

Agarwal Industrial Corporation rose 3.84 per cent to Rs 945.65 after announcing it had secured a prestigious tender from Indian Oil Corporation (IOCL) worth Rs 3.3 billion.In a regulatory filing during market hours, the company confirmed it had won the tender to supply Bulk Bitumen (VG-30 and VG-40 grades) to IOCL’s Kakinada locations.The firm quantity under the award totals around 60,500 tonnes across 11 parcels, while the optional quantity is approximately 33,000 tonnes across six parcels. This brings the total awarded quantity to roughly 93,500 tonnes. At current market prices, the firm o..