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Electricity generation in Sep 2020: First y-o-y increase in seven months

TSPL Vedanta 02 | T&D India

Electricity generation grew by 3 per cent in September 2020 over that in September last year, making it the first year-on-year increase in seven months.

Generation in September 2020 was also 0.4 per cent higher than in August 2020, reversing the month-over-month decline seen in August 2020.

Coal-fired power plants contributed to higher electricity generation during September 2020, offsetting the decline seen in renewable energy generation, principally wind. In fact, coal-based power generation was at a seven-month high in September 2020. Reflecting this was the seven-month high PLF of 55 per cent in September 2020.

Generation from renewable energy plants fell to a ten-month low in September 2020. It was 40 per cent lower than in August 2020. While solar power generation fell by 5 per cent, the decline in wind was as much as 53 per cent. Wind power generation in September 2020 was at its five-month low.

 

Consumption

Electricity consumption rose to a 14-month high in September 2020, suggestive of the higher levels of activity in the economy. On a monthly basis, electricity consumption rose by 6.3 per cent in September 2020, reversing the 5.8 per cent month-on-month decline seen in August 2020. Consumption in September 2020 was around 6 per cent higher than in September 2019 and 34 per cent higher than in April 2020—the most-affected lockdown month.

In terms of regional demand, while there has been a month-over-month improvement in electricity consumption in the northern, western and eastern regions in September 2020, the southern and north-eastern regions witnessed a decline. The western region, which is home to the most industrialised states of the country registered a 13 per cent monthly increase in power consumption, affirming to the higher activity here. The northern and eastern regions saw month-over-month electricity consumption increase by 8 per cent and 4 per cent, respectively. Power consumption in the southern region in September 2020 was 2.4 per cent lower than in August 2020, indicating sluggish industrial activity.

 

Note: This story is based on a report by CARE Ratings. Official statistics by Central Electricity Authority (CEA) for the month of September 2020 were not available till the time of filing this story.

Featured photograph courtesy Talwandi Sabo Power Ld

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