The lockdowns on account of an increase in Covid-19 cases in various states can impact all-India energy demand growth recovery in 1Q FY22 although demand is expected to be higher due to lower base effect, according to India Ratings and Research (Ind-Ra). In March, the all-India energy demand was higher by 22.8% year-on-year at 122 billion units. The early onset of summer season also contributed to the higher demand. On the other hand, electricity generation increased 23.5% to 118.6 billion units supported by 29.2% growth in thermal generation although hydro generation fell 7.8%. Despite the onset of summer season, said Ind-Ra, imposition of stricter lockdowns in major manufacturing states can impact demand from industrial segment which will impact thermal PLFs.

Source: Mint May 08, 2021 04:41 UTC