The power sector in India witnessed a significant change over the years due to the government’s efforts to foster investment in the sector, according to the Economic Survey of India, a flagship annual document of the Ministry of Finance, Government of India. According to the Power Sector in India Report in April 2018, sustained economic growth drove electricity demand in the country. India’s fast growing economy and population led to an increased demand for electricity. The Indian Government’s universal electrification drive and increase in power generation and transition capacities gave a fillip to the sector. ..

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THE ROAD AHEAD

After declining for five consecutive months in 2019, power demand in the country grew 3.5% year-on-year to 105.3 billion units and energy supply increased 3.6% y-o-y in January 2020. However, electricity demand in January grew at the slowest pace in nearly two years. In February 2020, India’s electricity supply rose 7.1% to 3.62 billion units per day as against 3.38 billion units in February of the previous year, marking the second straight month of growth after the decline in 2019. ..

EXHIBITS

Exhibit I: Installed Generation Capacity in MW (as on January 2019)
Exhibit II:India Peak Power Demand Growth (FY2015-2020)
Exhibit III: Electricity Generation from Conventional Sources (FY2015-FY2020)