Power consumption grows 7.5% to 1354.97 bn units in FY23-24 from Apr-Jan

India's power consumption increased 7.5 per cent on-year to 1354.97 billion units (BU) in the April-January period of this financial year, indicating an uptick in economic activities across the country.

Power consumption in the country has increased to 1354.97 billion units (BU) in the April-January period of this financial year, from 1259.49 BU in the April-January period of fiscal 2022-23, according to government data.

It was 1505.91 BU in the entire fiscal year of 2022-23, the data showed.

Experts believe the 7.5 per cent growth in power consumption in the country clearly shows a perk up in economic activities in the first 10 months of this fiscal year.

They said power consumption grew in August, September and October, mainly due to humid weather conditions, and a pick-up in industrial activities ahead of the festive season.

Experts are predicting a steady power consumption growth due to improvement in economic activities and cold wave conditions in February. They are of the view that India will have a steady growth in power consumption as well as demand during the current fiscal year.

The National Statistical Office has pegged Indian economic growth at 7.3 per cent in 2023-24 over and above the provisional growth rate of 7.2 per cent during the last financial year in its first advance estimates released earlier in January.

Power consumption in January rose 5.4 per cent to 133.18 BU, compared to 126.30 BU, the data showed.

The peak power demand met -- the highest supply in a day -- rose to 222.32 GW in January 2024. The peak power supply stood at 210.72 GW in January 2023 and 192.18 GW in January 2022.

Experts said that power consumption as well as demand improved in January as mercury fell sharply in the month, especially in North India.

The cold wave resulted in increased use of heating equipment like heaters, blowers and geysers which led to increase of power demand as well as consumption.

The power ministry had estimated the country's electricity demand to touch 229 GW during the summer in 2023.

The demand did not reach the projected level in April-July due to unseasonal rains.

The peak supply, however, touched a new high of 224.1 GW in June before dropping to 209.03 GW in July.

Peak demand touched 238.82 GW in August.

In September 2023, it was 243.27 GW. The peak demand was 222.16 GW in October, 204.77 GW in November and 213.62 GW in December 2023.

Industry experts said power consumption was affected in March, April, May, and June last year due to widespread rainfall.