INDIA's POWER DEMANDS

1. Context 

2.  Factors behind the rapid growth in demand

• In absolute terms, the states with the strongest growth in demand in 2022 were the northwestern desert state of Rajasthan and the western states of Gujarat and Maharashtra, where many of the country's industries are concentrated.
• The eastern state of Chhattisgarh known for extensive mining activity, had 16.6 per cent growth in the five months since the monsoon ended in 2022, while Rajasthan's power demand grew by 15.1 per cent in the same period.
• Growth rates were also high in Punjab in the north, where agricultural demand makes up the lion's share of total power use and Madhya Pradesh, Telangana and Bihar where residential demand has historically accounted for most of the load.

3. Reasons for demand growing

• Both Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman have previously linked increasing power demand to higher economic activity.
• Industrial and commercial activity accounts for more than half of India's annual power use.
• Homes account for a fourth, while agriculture has accounted for over a sixth in recent years.
• Consumption patterns vary wildly by state and season.
• A heatwave and easing of COVID-19 curbs drove power to demand higher in the first half of 2022.
• Erratic weather and a jump in agricultural activity were among the most prominent reasons behind the high growth in the second half of last year.
• In northern Haryana and Telangana in the South, unexpected dry spells contributed to higher demand from agricultural consumers for electricity during November and December, which was based on assessments by grid operations in different states.
• Higher demand from industry in Andhra Pradesh and tech employees returning to office in India's silicon valley Bengaluru in Karnataka state also drove power use up.
• In the football-crazy southern state of Kerala, the live streaming of the World Cup matches potentially contributed to a 4.1 per cent hike in peak demand.
• In Punjab, a policy to provide free power to some consumers boosted demand, while a decision to increase the hours of power supply to agricultural consumers in Rajasthan resulted in a 22 per cent rise in November and a 15 per cent rise in power demand in December.

4. The Way forward

• Officials are scrambling to ensure India does not face power outages this summer when demand typically peaks.
• India faces high risks of nighttime blackouts this summer, following years of neglect in adding new coal and hydropower capacity, needed particularly at night when solar capacity is unavailable.

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