Dry weather in northern India boosts domestic energy demand by 10%, ET EnergyWorld

New Delhi: India has witnessed a significant increase in electricity demand, with a 10% increase in the first four months of the fiscal, reaching around 150 billion units in July 2024 alone. This increase in consumption was mainly driven by northern states grappling with a lack of monsoon rains, according to a report by CRISIL Market Intelligence & Analytics.

The report highlights regional variations in energy consumption: northern states saw a noticeable increase in demand of 16%, mainly due to higher temperatures in Punjab, Haryana and Rajasthan. While southern and western regions saw an increase of 4% and a marginal decrease of 1%.

Electricity production nationwide kept up with rising demand, rising 5% to 156 billion units in July. The increase was largely supported by coal, nuclear and renewables, up 4%, 17% and 12% respectively. However, hydropower production fell 6% due to lower reservoir levels, particularly in the north, where storage was only 33% of capacity.

Additionally, the Real-Time Electricity Market (RTM) saw a significant 34% increase in trading volume in July, reflecting the urgent demand for electricity amidst volatile supply conditions.

The report sheds light on the pressing challenges facing the Indian energy sector, including regional imbalances and the impact of erratic monsoons on energy generation and consumption.

Published on August 2, 2024 at 01:50 PM IST

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