Continued decline in all-India power demand affecting thermal PLFs: Ind-Ra

The all-India energy demand decreased 14.9 per cent year-on-year to 102.7 billion units in May while energy supply also decreased 14.9 per cent, resulting in the energy deficit remaining at 0.5 per cent (May 2019).

The power demand declined amid the Covid-19 led lockdown on account of a decline in commercial and industrial demand from major manufacturing states like Maharashtra (down 11.3 per cent), Gujarat (down 13.5 per cent) and Tamil Nadu (down 15.1 per cent).

The decline in power demand narrowed in May (down 14.9 per cent, April: down 22.3 per cent) due to the gradual lifting of lockdown for certain economic activities, increase in domestic consumption with the peak summer season and increase in agricultural usage due to the onset of sowing season.

With the decrease in demand, electricity generation (excluding renewables) also decreased 17.7 per cent to 96.3 billion units in May (April: down 25.4 per cent) with thermal generation declining 21.4 per cent (April: down 28.5 per cent).

Thermal plant load factor (PLF) declined to 47.9 per cent (April: 42.4 per cent, May 2019: 63.6 per cent) on account of the lower demand, said Ind-Ra in its latest credit news digest on India's power sector.

Central, state and private sector PLFs decreased to 55.2 per cent in May (May 2019: 69.6 per cent), 40 per cent (61 per cent) and 49 per cent (61.3 per cent) respectively. Thermal PLFs were the most impacted due to the decline in the power demand over March to May, given the must-run status of nuclear, hydro and renewables.