MUMBAI: Energy demand in June contracted by 10.9 per cent year-on-year for the fourth consecutive month to 105.6 billion units but is showing signs of recovery due to gradual lifting of COVID-19 induced lockdown for certain economic activities, according to India Ratings and Research (Ind-Ra).
Energy supply also decreased 10.9 per cent year-on-year, resulting in the energy deficit remaining at 0.4 per cent, it said in its latest credit news digest on India’s power sector.
The power demand declined for June amid the COVID-19 led lockdown with a fall in commercial and industrial demand from major manufacturing states like Maharashtra (down 17.1 per cent), Gujarat (down 10.2 per cent) and Tamil Nadu (down 10.3 per cent).
The energy demand is showing signs of recovery as the decline in power demand narrowed in June down 10.9 per cent, in May down 14.9 per cent and in April down 22.3 per cent due to the gradual lifting of lockdown for certain economic activities and an increase in domestic consumption with the extended summer season.
The energy demand also showed a 2.9 per cent month-on-month improvement over May, said Ind-Ra.
With the contraction in demand, electricity generation (excluding renewables) also declined 11.8 per cent year-on-year to 99.5 billion units in June (in May down 17.7 per cent) with thermal generation declining 17.7 per cent (down 21.4 per cent).
Thermal plant load factor (PLF) declined to 49.5 per cent in June (in May 47.9 per cent and June 62.4 per cent) on account of the lower demand, said Ind-Ra
