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India's Electricity Generation Surges 15% In May Amid Intense Heat Wave

Thermal power, predominantly derived from coal and gas plants, accounted for 127.87 billion electricity generation units in the month under review

India's electricity production saw a significant increase of 15.06 per cent in May of this year, reaching 167.55 billion units, compared to 145.61 billion units generated in the corresponding month of the previous year. This rise was attributed to heightened demand driven by the intense heat wave, as reported in the monthly update from the Central Electricity Authority.

Thermal power, predominantly derived from coal and gas plants, accounted for 127.87 billion electricity generation units in the month under review. This marked a notable 14.67 per cent rise compared to the corresponding period in the previous year.

On May 30, electricity demand reached an unprecedented peak of 250GW due to a prolonged heat wave affecting North India, sustaining high demand throughout May and much of June. Projections indicate that peak power demand could escalate to 260GW by the fiscal year 2024-25.

As the monsoon progresses ahead of schedule and temperatures decrease in northern states, the current peak demand for electricity stands at approximately 200GW.

The anticipation of increased hydropower generation accompanies the replenishment of reservoirs during the monsoon season. Notably, electricity production from large hydro projects rose 9.92 per cent in May, reaching 11.62 billion units.

Meanwhile, renewable energy projects, excluding hydro, contributed 22.50 billion units, marking an 18.34 per cent increase compared to the same period last year. In response to rising demand, the Ministry of Power has instructed domestic coal-based plants to blend 6 per cent of imported coal until September to ensure adequate electricity generation.

Driven by India's robust economic growth rate of 8.2 per cent, the highest among major economies, there has been a corresponding surge in power demand due to increased economic activity. The government is contemplating a review of power demand projections to strategise the expansion of generation capacity over the next five years.

Also Read : India's 7% Growth Insufficient To Close Job Gap: Citi

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