Smooth power supply in summer ensured

India’s power demand is expected to rise by 7-8 per cent yoy in the second quarter of 2024 due to robust industrial activity, strong GDP growth and the Indian Meteorological Department’s (IMD) forecast of above normal temperatures during the summer months.

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However, much of this demand will be met through larger operating capacities, adequate coal inventory and higher utilisation of gas-based plants, which should mean minimal supply disruptions, says Fitch Ratings.

India’s monthly power demand typically peaks in the pre-and post-monsoon months of May or August, as cooling demand picks up with the rise in temperature. IMD has predicted higher-than-normal maximum temperatures over most parts of the country till June 2024, further increasing demand. At the same time, distribution utilities may work towards minimising supply disruptions due to the ongoing general elections in April and May, given that power supply is a politically sensitive issue.