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Power demand in India expected to grow 6% in FY22: Icra

Demand for electricity in India is expected to grow 6% in 2021-22 as compared to the previous fiscal year, rating agency Icra said on Tuesday. It has also estimated power generation capacity addition at 17- 18 GW for the ongoing fiscal year.

“ICRA Ratings has estimated the all India electricity demand growth at 6.0% for FY2022 on a year-on-year (YoY) basis, considering the favourable base effect, relatively lesser impact of the second wave on electricity demand and the pick-up in the vaccination programme,” an Icra statement said.

The electricity demand slowed down during the first two months of 2021-22 compared to March 2021 amid lockdowns imposed by state governments to control the second wave of Covid-19, it said.

Nonetheless, with the slowdown in fresh Covid-19 infections from the second half of May 2021, state governments eased lockdown restrictions and this in turn improved the electricity demand growth prospects as seen in June 2021, with a month-on-month growth of 3.9%, it stated.

However, it added that any resurgence in infections leading to lockdown restrictions would remain a key downside risk for the demand.

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