Heatwaves in May see India's power demand at 156 billion units

12 Jun 2024 CW Team

India's power demand surged to an unprecedented 156 billion units (BU) in May 2024, driven by severe heatwaves and robust manufacturing activity, according to a report by CRISIL. This represents a significant year-over-year increase of approximately 15%. The peak electricity demand also set new records, reaching 250 gigawatts (GW) on May 30, fuelled by soaring temperatures that hit 50.5 degrees Celsius in Churu, Rajasthan, on May 29.

The intense heat led to a substantial rise in the use of cooling equipment, contributing to the spike in power consumption. Additionally, strong manufacturing activity bolstered demand, with the Purchasing Managers" Index (PMI) comfortably exceeding the expansionary threshold of 50, recording 58.8 in April and 57.5 in May. This industrial vigor played a crucial role in the increased power demand from commercial and industrial sectors.

Reflecting on these trends, a CRISIL analyst noted, "Power demand is likely to have grown about 13% compared with April-May 2023. Indeed, in May, power demand is estimated to have surged to around 156 billion units, logging a roughly 15% on-year increase."

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