For the second consecutive month, power demand is up, indicating signs of recovery. In February, conventional electricity generation increased 10.4 per cent on a yearly basis, according to a report by brokerage firm Motilal Oswal.
In comparison, power demand was down from September to December 2019. All-India peak demand for the 2020 fiscal was 183 GW, which is higher than the last three years’.
The demand pick-up was broad-based and across States. Coal-based generation increased 10 per cent YoY, hydro generation went up 18 per cent while nuclear generation was up 8 per cent. Renewable power generation went up by 14.5 per cent, which resulted in an overall power generation increase of 10.8 per cent, according to Motilal Oswal. In renewables, solar power generation went up by 21.5 per cent.
For conventional power generation, coal stocks at power plants increased, led by ramp-up in coal production. Coal India’s production went up 14 per cent on a yearly basis in February. Stocks at power plants now stand at 37mt (at 21 days of consumption) compared to 26 mt during the same period last year.
Further, volumes in the Indian Energy Exchange (IEX) have shown a significant increase. Day Ahead Market (DAM) volumes on IEX increased 53 per cent year-on-year. Prices increased marginally by 1 per cent when compared to the previous month (January) to ₹2.9/kWh. However, on a year-to-date basis, DAM volumes on the IEX are 3 per cent lower.