New Delhi, Dec 4 (UNI) Electricity demand declined 0.3 percent year-on-year in November, marking the second consecutive month of degrowth, says a report released by credit rating agency, CRISIL on Thursday.
Lower temperatures cooled power demand by an estimated 0.3 percent to 123 billion units (BUs) in November compared with 124 BUs a year ago. This comes after a nearly 6 percent on-month degrowth in October, the report notes.
Among others, Madhya Pradesh logged an 11 percent decline in demand due to severe cold wave conditions, while Rajasthan saw demand dip by 7 percent due to cold weather, the report says.
Degrowth in electricity consumption refers to the planned reduction of energy use and resource depletion to balance the economy with the environment, improve well-being and reduce inequality.
CRISIL said that 50 percent of India’s power demand arises from industrial and commercial consumers, and manufacturing expanded at a slower pace in November.
The Manufacturing Purchasing Managers’ Index was at 56.6 in the current month compared to 59.2 in October.
As per the report, in the real-time market (RTM), the average market clearing price (MCP) declined 9 per cent year-on-year to Rs 3.13 per unit in November, indicating ample availability amid tepid electricity requirements. Time block-wise, the average MCP during solar hours was Rs 2 per unit this November compared to Rs 2.7 per unit of the same period last year” it said.
These prices enabled distribution companies and commercial and industrial consumers to meet demand at a competitive price and replace costlier power by procuring through the exchange.
The report noted that Renewable energy-based generation is estimated to have increased 17 percent year-on-year, rising for the eighth time this fiscal, with rising capacity additions.
On the other hand, Hydro power demand has also grown every month this fiscal, with 27.6 per cent year-on-year growth in November. Conversely, coal-based power generation declined for a second time this quarter.
It is estimated to have declined 3.5 percent year-on-year in November after suffering a shrinkage of 14 percent year-on-year in October.
