Pan-India electricity demand to contract by 5-6.0% in FY21 due to local lockdowns: ICRA

New Delhi: Re-imposition of lockdown restrictions in many parts across the country may lead to decline in the all India electricity demand by 5-6% in FY2021, rating agency ICRA NSE -0.25 % said on Monday

In April, ICRA estimated 1% de-growth in power demand in the current financial year.

The revised energy demand de-growth estimate assumes demand decline of 3.5 – 4.0% in Q2 and Q3 FY2021 and a marginal recovery of about 1% in Q4 FY2021, given the slower pace of recovery expected in industrial and commercial activity in the country, an official statement said.

This in turn is expected to suppress the thermal power plants utilisation on an all-India level to about 50-51% in FY2021 against rating agency’s earlier estimate of 54% and from 56% in FY2020.