Covid 2.0 restrictions to impact energy demand growth recovery: Ind-Ra

The lockdowns on account of an increase in Covid-19 cases in various states can impact all-India energy demand growth recovery in 1Q FY22 although demand is expected to be higher due to lower base effect, according to India Ratings and Research (Ind-Ra).

In March, the all-India energy demand was higher by 22.8% year-on-year at 122 billion units. The early onset of summer season also contributed to the higher demand.

On the other hand, electricity generation increased 23.5% to 118.6 billion units supported by 29.2% growth in thermal generation although hydro generation fell 7.8%.

Electricity generation from renewable sources increased 10.1% with solar generation increasing 21%, said Ind-Ra.