The growth in energy demand declined steeply in September due to lower power generation in the wake of coal shortages, a report said.
India Ratings and Research (Ind-Ra) has published the October 2021 edition of its credit news digest on the domestic power sector.
As per the report, all-India energy demand increased marginally by 1.8 per cent year-on-year to 114.7 billion units (BU) in September 2021 (August 2021 - 17.8 per cent) after registering a 16 per cent increase in 5M FY22 (April to August 2021).
“Ind-Ra believes that the steep reduction in growth in energy demand in September 2021 was attributable to lower generation, as reflected in an increase in power outages in thermal power plants due to coal shortages,” it stated.
Generation also declined from hydro power plants (down 5.9 per cent y-o-y) and coal-based thermal power plants (down 0.5 per cent).
The total all-India generation decreased marginally by 1.4 per cent y-o-y to 108.35BU in September 2021.
However, there was a 30.8 per cent increase in generation from renewable sources to 13.6BU, led by a 43 per cent improvement in wind power generation to 6.43 BU and 25 per cent growth in solar generation to 5.11 BU.
The coal production cumulatively by Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) increased by 20.1 per cent to 47.6 million tonnes (August 2021: no change), owing to the improved all-India power demand.
