FCC

Ind-Ra: Covid 2.0 restrictions can hit energy demand growth recovery

2021-05-11

Credit rating agency India Ratings and Research (Ind-Ra) told the media that the lockdowns in different manufacturing states due to Covid-19 can affect all-India energy demand growth recovery in the first quarter of FY22 whereas demand is anticipated to be higher due to the lower base impact.

The early outbreak of summer has added to the higher demand of all-India energy as it was higher by 22.8% year-on-year (y-o-y) at 122 billion units.

The increase in energy demand and reduction in energy generation from hydro and renewable sources improved the thermal plant load factor (PLF) by 66.5%. The thermal sector's PLFs increased across the central, state, and private sectors by 80.4% in March.

The lockdown in major manufacturing states due to Covid-19 has affected the demand from industrial division, which in return impacted the thermal PLFs, said Ind-Ra.

Further, the agency added that the electricity production from renewable sources raised by 10.1% and solar generation increased by 21%.

The transmission line addition increased tremendously in the fiscal year 2021 and increased to 16,750 circuit km above and it was higher at 4,381 circuit km in March.

Ind-Ra is one of the India's most reputed credit rating agencies that provides ratings, research and rigorous analytics of the market in India.

Image Source

Also read: Impact of COVID-19 on the market of worldwide room air conditioners industry