India’s electricity generation is growing at a tepid pace. In FY19, power generation rose just 3.6%. However, there has been a steady expansion in base and peak demand. In FY19, base and peak demand increased 5% and 7.9%, respectively, shows data compiled by Central Electricity Authority. Base demand is minimum electricity requirement in a day, and peak demand is the maximum demand during a set period.
The growing demand is facilitating new power purchase agreements (PPAs). A Gujarat utility has invited bids for 3,000 megawatts (MW) of power, the first long-term PPA after almost four years, point out analysts at Motilal Oswal Securities Ltd.
