Power Demand Improvement Slowed Down In November: India Ratings

India Ratings and Research (Ind-Ra) has published the December 2021 edition of its credit news digest on India's power sector. The report highlights the trends in the power sector, with a focus on capacity addition, generation, transmission, merchant power, deficit, regulatory changes and the recent rating actions by Ind-Ra.

The all-India energy demand increased just 1.7% yoy to 99.6 billion units (BU) in November 2021, after growing 12% yoy in 7MFY22. The slowdown in the improvement was led by the onset of the winter season, impacting the demand from the northern region (up 2% yoy) and southern region (down 5% yoy). India Ratings and Research (Ind-Ra) believes that the reduction in the energy demand in November 2021 is also attributable to lower generation, as reflected in an increase in the power outages at thermal power plants due to coal shortages. Additionally, the all-India energy demand for the first 25 days of December improved 3.5% yoy to 88.7BU.

The total all-India generation increased marginally by 2% to 99.4BU in November 2021. The overall increase in generation was however supported by a 16.4% yoy increase in the generation from renewable sources and a 16% yoy rise in generation from hydro power sources, whereas the generation from coal-based thermal power plants reduced by 0.3% yoy.