Lockdowns spell a downside risk for electricity demand growt

Lockdowns spell a downside risk for electricity demand growth in FY2022: ICRA


April 29, 2021
Thermal power among most affected segments
The lockdown restrictions across many states in the country amid the second wave of Covid-19 infections, could adversely impact the electricity demand growth prospects in FY2022.
As per the Power System Operation Corporation Limited (POSOCO) data for April 1-25 , the electricity demand is higher by 40.4% on a Y-o-Y basis, considering the favourable base effect, due to the impact of the all-India lockdown on electricity demand in April 2020.
However, the average daily demand has slowed down from 4,071 million units (MUs) (Y-o-Y growth of 48%) during the first 10 days of April 2021 to 3,923 MUs (Y-o-Y growth of 35%) during the subsequent 15 days, considering the surge in Covid cases and consequent restrictionsthat were imposed by various state governments.

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