India’s electricity generation at near two-year peak but still isn’t enough

Electricity generation in India in the month of April 2016 stood at 99 billion units, up nearly 15%--highest in 22 months.

Moreover, states like Andhra Pradesh, Chhatisgarh, Himachal Pradesh, Tamil Nadu, Telangana and West Bengal claim that they are supplying 24 hours of electricity to their rural consumers—farmers—whereas Uttar Pradesh and Bihar promise 12 and 18 hours of electricity supply, respectively, Elara Capital said.

According to a report titled ‘Undercurrent’ by Elara Capital, the power generation growth in the private sector is up 25% whereas the government sector companies added 10% rise in the given month.

However, this still isn’t enough.

An analyst tracking the power generation sector told zee business, “The demand continues to outpace supply even with these impressive growth in electricity generation.”

Elara’s report said that states like Bihar, Haryana, Kerala, Uttar Pradesh, Tamil Nadu, Madhya Pradesh and West Bengal registered an over 20% rise in demand for electricity.

The data showed that base electricity demand in the month of March 2016 increased by 12%, at 96 billion units. However, the supply—even after a 13% growth—remained short at 94.5 billion units.

Elara Capital said that the good news is that even this electricity deficit of 1.5% is the lowest in many years.  

Similar story unfolded in peak electricity generation which increased by 4% and supply rose by 5%. However, peak electricity deficit came in at 1.7%--again lowest in many years, it said.

Hydro falls

A major cause of worry remains the hydro power generation in the country.

Elara Capital report said that hydro power generation in India fell for the eight consecutive month in April.

The two leading hydro power generators in India—NHPC and SJVN reported a 14% and 26% drop in power generation in the month of April.