New Delhi, July 9 Power demand in India fell 1.9 per cent (year-on-year) in June to 150 billion units (BUs) — declining for the second consecutive month — as above-normal monsoon rainfall lowered temperatures in most of the country, a Crisil report said on Wednesday.
India received 7 per cent excess rainfall compared with the long period average between June 1 and 25. Last monsoon, the same period had seen an 11 per cent deficit.
The average market clearing price (MCP) in the real-time market (RTM) declined 26 per cent to Rs 3.73 per unit in June, indicating ample availability amid tepid electricity volume requirement, according to the report.
Tracking the decline in demand, power generation declined 0.8 per cent to 161 BUs in June.
According to the report, power demand in the northern region decreased 5 per cent on-year compared to 23 per cent rise in June 2024.
“Rainfall in the northwest region, which includes north India as per the classification of India Meteorological Department (IMD), was 37 per cent above normal, in sharp contrast to June 2024, which saw heatwaves and rainfall 33 per cent below normal,” the report noted.
In the southern region, however, power demand increased 5.3 per cent on-year, in line with a rainfall deficit of 5 per cent in the southern peninsula this June. This year, the southwest monsoon had covered the entire country by June 29 as against the normal date of July 8.
“That said, while rains limited power demand growth, manufacturing activity provided support,” the report highlighted.
Coal remains the primary fuel to generate electricity in India. As on June 30, thermal power plants had 62 million tonnes (MT) of coal stocks, the highest level since April 2021.
The stock level was 47 MT a year ago. The improvement in coal inventory during the month was supported by lower coal-powered generation Consequently, as on June 30, coal inventory had improved to 21 days compared to 16 in June 2024, said the report.
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