Power demand likely hit an all-time high of ~156 BU in May

A spurt in usage of cooling equipment amid severe and prolonged heatwaves across the country, together with strong manufacturing activity, ensured robust demand for power in the first two months of this fiscal.

Power demand is likely to have grown ~13% compared with April-May 2023. Indeed, in May, power demand is estimated to have surged to ~156 billion units (BUs), logging a ~15% on-year increase.

The country’s average maximum temperature rose to 35.6^oC in April 2024, a 0.65^oC departure from normal. Of the 30 days in April, maximum temperatures were below normal on only two days across the country.

The heatwaves were more intense in May, especially during the second half. States in northwest and central India and Gujarat faced severe heatwaves. Towards May-end, heatwave conditions extended to more parts of central and north India and to Chhattisgarh, Bihar and Vidarbha. Pan-India maximum temperatures reached 45-48^oC by the month-end. Temperatures touched a scalding 50.5^oC, the highest of the season, in Churu, Rajasthan on May 29.

Meanwhile, manufacturing activity, as indicated by the Purchasing Managers’ Index (PMI), remained comfortably above the expansionary mark of 50 in April and May at 58.8 and 57.5, respectively. This boosted power demand from the commercial and industrial segment.

The fallout: India touched new highs in peak power demand at 246 GW and 250 GW on May 29 and 30, respectively.