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Analysis of data from federal grid regulator Grid-India showed that total power generation fell 6% year-on-year to 142.45 billion kilowatt-hours (kWh) in October.
“Demand has declined due to persistent rains in most parts of the country compared to last year,” said Bhanu Patni, associate director of India Ratings and Research.
Debabrata Ghosh, India head of Aurora Energy, said since most of the major festivals were in October, industrial demand for power was low.
Growth in electricity usage has slowed this year due to the broader economic slowdown and heavy rains, which have reduced demand for cooling.
The country’s coal-fired power generation in October also fell at the fastest pace since June 2020, when the COVID-19 pandemic led to a nationwide lockdown, as overall power demand declined.
Grid-India data shows that coal-fired generation, which typically accounts for about 75% of India’s power generation, has fallen in six out of 10 months this year, the most since 2020.
India’s coal-fired power generation fell 13.2% year-on-year to 98.38 billion kilowatt-hours (kWh) in October, Grid-India data showed.
The decline in demand for the fossil fuel for power generation in India, the second largest importer of coal, has hurt mining giant Coal India.
Coal India, which accounts for nearly three-quarters of the country’s output, suffered its worst profit decline in five years during the quarter ended September due to lower demand for power this year.
The company’s output fell nearly 10% in October, while coal supplied to power plants fell 6%.
Meanwhile, India’s renewable energy production rose to 19.75 billion kWh in October, up 30.2% from a year earlier.