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Peak electricity demand to soar 7% this summer

Power demand in northern region would peak to the extent of 56 gigawatt during April to September 2017

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As temperatures soar, demand for electricity is steadily increasing across the country. The peak energy demand this summer is likely to go up by 7% from last year's.

As per India Meteorological Department's (IMD) predictions, the period between March and May will witness above-normal temperatures. This will certainly drive up the electricity requirement in the country. There has been a sudden surge in the demand since last week of March as the temperatures rose 4 to 6 degrees above normal.

The power minister recently took a review of power supply position in the country, especially the northern region, and preparedness of various utilities during the forthcoming summer season.

During the review, it was observed that the power demand in northern region would peak to the extent of 56 gigawatt during April to September 2017. "The demand in the southern region has already peaked to 42 gw, while in western region it has touched 50 gw and is expected to reduce to 46 gw between April-June 2017. The all-India peak demand during this year's summer is expected to be 165 gw," said a ministry spokesperson.

Figures available with the Central Electricity Authority (CEA) show that during the summer of 2016, the peak demand in India was 1,59,542 megawatt (mw), but only 1,56,934 mw of it was met. Thus, during last summer there was a peak deficit of 1.6%.

"During the months of April 2016 to January 2017, the states of Uttar Pradesh, Maharashtra, Gujarat and Tamil Nadu experienced high demand for electricity," said a spokesperson from Independent Power Producers Association of India (IPPAI).

Maharashtra experienced the highest demand at 1,15,549 million units (MUs), followed by Uttar Pradesh at 90,833 MUs, Tamil Nadu at 87,540 MUs and Gujarat at 86,311 MUs. The states and Union Territories that faced shortfall include Jammu and Kashmir, Andaman and Nicobar Islands and Assam.

"Requirement in J&K was 14,460 MUs, but due to a deficit of 19.10% the energy available was 11,699 MUs. Similarly, Assam needed 7,762 MUs, but the supply was 3.7% less at 7,477 MUs and the Andaman and Nicobar Islands faced the highest shortage of 25% as their demand was 200 MUs against the supply of only 150 MUs," said the IPPAI official.

"The peak demand this summer is likely to rise by 5-7% vis-à-vis last year," said Sandeep Upadhyay, managing director and CEO, Centrum Infrastructure Advisory Limited.

The power is likely to become dearer. "We have already witnessed a moderate increase in power price between the month of February and March 2017. The average power price has increased in this period from approximately Rs 2.50 to Rs 3.00 and it is likely to further increase in the coming months touching up to Rs 3.50," Upadhyay told DNA Money.

In the next few months, the states of Andhra Pradesh, Telangana, Maharashtra and Karnataka are likely to see higher demand. On the basis of the quantum of deficit/surplus, J&K, Bihar, Jharkhand are the states which are likely to be importers and Chhattisgarh, Madhya Pradesh and Gujarat are likely to be exporters. This year too India will continue to be a power deficit nation.

The worrying factor remains to be falling levels in reservoirs in southern India. Lower levels mean lesser power generation. This year itself there has been a reduction of 700 MUs of power. "The state utilities of the northern region face the dust storm and thunderstorm-related disturbances in the electricity grid during April-June period which often cause 6-7 gw reduction in load," said ministry spokesperson.

SWELTERING HEAT

  • Power demand in northern region would peak to the extent of 56 gigawatt during April to September 2017
     
  • During April 2016 to January 2017, UP, Maharashtra and Tamil Nadu saw high demand
     
  • Maharashtra saw the highest demand at 1,15,549 million units, followed by Uttar Pradesh
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