Power demand showing signs of recovery: Motilal Oswal Institutional Equities

Kolkata: Conventional electricity generation increased 10.4% year on year in Feb’20. This is the second straight month of demand uptick after four consecutive months of decline. The increase in Feb’20 is on low or favourable base of 1% growth in February 2019 and higher number of days given the leap year, adjusting for which growth would be 7% year on year said equity analysis firm, Motilal Oswal Institutional Equities.

The demand uptick was broad-based and across states. Coal-based generation increased ~10% year on year, hydro generation rose 18% year on year, while nuclear generation was up 8% year on year. Total generation was up 10.8% year on year. Renewable energy generation grew at a healthy pace (14.5% YoY) led by 27% rise in solar generation.