Because of cooler weather, India’s electricity consumption fell by about 0.3 %, dropping to 123 billion units (BUs) in November versus 124 BUs in the same month last year, the report told Thursday.
That follows an almost 6 % decline the month before. “Among others, Madhya Pradesh logged an 11 per cent decline in demand due to severe cold wave conditions, while Rajasthan saw demand dip 7 % due to cold weather,” the report noted.
Installation output rose slightly, up 0.5 % year‑on‑year to 134 BUs in November. Renewable generation, meanwhile, surged roughly 17 % from the previous year – the eighth consecutive rise this fiscal year – thanks to new capacity coming online.
By contrast, coal output fell for the second time this quarter, reducing its share of total generation to 72 % from 75 % a year earlier and highlighting how quickly the sector can adjust to demand changes.
As of November 30, thermal plants held 54 million tonnes of coal, giving them an inventory of 18 days, compared with 14 days a year earlier. This build‑up comes as the power sector’s coal consumption dropped 5.5 % compared with last year’s November and 3.17 % year‑on‑year from April through October.
The figures suggest that lower thermal‑coal demand is tied to the growth of renewables, the report added.
Even with the dip, electricity usage is still expected to rise in tandem with the economy over the fiscal year. “We estimate power demand will increase 1‑3 per cent on‑year this fiscal to 1,715‑1,725 BU, sustained by steady economic performance and increasing disposable income,” the report stated.
Weather swings may curb the speed of demand growth, but the economy is still projected to maintain a 7 % GDP growth rate for the year, the report noted.
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