India s power demand is expected to rise by 7-8% in Q2 2024 due to robust industrial activity, GDP growth, and above-normal temperatures. The rating agency believes this demand will be met through larger operating capacities, adequate coal inventory, and higher utilization of gas-based plants. The Indian Ministry of Power has directed both gas-based and imported-coal-based power stations to maintain availability to meet the anticipated demand.
India s power consumption rose by 8.4% to 139 billion units in July 2023 compared to the same month last year, according to the government data. The peak power demand met during the month was recorded at 208.82 GW, reflecting a rise from the 190.35 GW recorded in July 2022, and the 200.53 GW registered in July 2021. The country s electricity demand is estimated to touch 229 GW during the summer season, but it was impacted earlier this year due to unseasonal rains, which reduced the use of cooling appliances.
Using generating units that are more than 25 years old can work since the station heat rate of well-maintained plants does not get adversely affected with age.