New Delhi: The country experienced a significant increase in power consumption in May 2024, with a 15% rise to 156 billion units (BU), attributed to the intense heat and the corresponding surge in the use of cooling appliances. According to CRISIL's latest report, the country's electricity consumption reached its highest level ever in April and May 2024.
As stated in Report A, a surge in the usage of cooling equipment during severe and prolonged heatwave nationwide, coupled with robust manufacturing activity led to strong demand for electricity in the initial two months of this fiscal year.
Power demand has risen by 13% compared to April-May 2023. Additionally, in May, power demand is estimated to have spiked to around 156 billion units (BUs) marking a 15% increase compared to the previous year.
In April 2024, the country experienced an average maximum temperature of 35.6 degrees Celsius, marking a deviation of 0.65 degrees Celsius from the norm. Out of the 30 days in April, maximum temperatures were below the normal level for just two days nationwide, as indicated in the report. The earlier peak of the power demand was 152 BU in August 2023.
High temperature
In May 2024, the intensity of heatwave heightened, particularly in the latter half of the month. States in northwest and central India, along with Gujarat, experienced severe heatwave. Towards the end of May, heatwave conditions expanded to encompass more areas in central and north India, as well as Chhattisgarh, Bihar and Vidarbha. Nationwide, maximum temperatures soared to 45-48 degrees Celsius by the end of the month. On May 29, temperatures peaked at a scorching 50.5 degrees Celsius in Churu, Rajasthan, marking the highest of the season.
Meanwhile, manufacturing activity, as indicated by the Purchasing Managers’ Index (PMI), remained comfortably above the expansionary threshold of 50 in both April and May 2024, registering at 58.8 and 57.5 respectively. This surge in manufacturing activity bolstered power demand from the commercial and industrial sectors.
Peak Power Demand
According to the report, on May 29 and 30, the country reached unprecedented peaks in peak power demand, hitting 246 GW and 250 GW, respectively. Overall power generation is estimated to have surged by approximately 9% and 18% compared to the previous year in April and May, respectively, with May recording a remarkable high of approximately 169 billion units (BUs).
With the enforcement of Section 11 for gas-based power plants, the proportion of gas in overall generation rose to 3.1% in May 2024 from 1.6% in May 2023.
On the contrary, the share of coal in overall generation experienced a slight decline, dropping from 73% to 72%, while the shares of other fuels remained unchanged.
Read more: Will Make Efforts to See That There Is No Coal Shortage: Union Minister Kishan Reddy
