Power shortages are likely to continue in the short to medium term on rising demand in the peak season and the persisting supply-demand mismatch, according to a foreign brokerage report which attributed the recurring annual crisis to the slower thermal capacity addition in the past few years.
Thermal capacity addition has lagged power demand that grew steadily at 4 per cent annually between FY10 and FY19 as against thermal capacity addition which rose only 9 per cent during this period. The capacity addition declined to just about 2 per cent between FY19 and FY22 when demand jumped 5 per cent.
