Power demand rises 7% in March quarter on robust economic activity: Report

Power demand in the country rose 7 per cent on an annual basis in the three months ended March, according to a report.

Rating agency Crisil in its latest report also said that in March, there was a year-on-year decline of 1.3 per cent in power demand.

“Although the month (March) saw a decline in demand, the fourth quarter of fiscal 2023 witnessed a 7 per cent on-year growth as January and February had seen demand grow 13.7 per cent and 10 per cent, respectively,” it said.

The growth in the March quarter was led by increased heating requirement in winter months and robust economic activity, it added.

The report also said that despite the drop in power demand in March, prices increased 13 per cent on-year in the fourth quarter of last fiscal.

As per the report, in fiscal 2024, soaring temperature and resilient economic activity are expected to keep power demand growing.

On average, the first quarter of this fiscal should see power demand grow 4 per cent on-year on a high base of the previous year, it noted.

In fiscal 2024, given predictions of heat waves that will increase usage of air conditioners, fans, and refrigeration units, peak electricity demand should touch a record high, the report said.

India’s peak power demand is expected to grow to 230 GW in the first quarter of fiscal 2024, rising 6.5 per cent on-year.