Déjà vu for thermal power sector as the lockdown hits demand again

Electricity generation had recovered in January and February this year, after four months of declines in 2019. But it is set to plunge again as industries and commercial establishments across the country have either shut shop or have curtailed activity significantly owing to the country-wide lockdown.

Peak electricity demand plunged 32% from 171,000 megawatts (MW) on 1 March to 117,000MW on 29 March. The reported numbers are at least a fourth lower than the year-ago peak demand levels and reflect the extent of demand erosion in the country.

“Although fall in industrial/commercial demand due to the lockdown has been a major factor, the expected increment in retail demand has been much lower,” said analysts at ICICI Securities Ltd in a note.