Unseasonal rains and the after-effects of cyclonic storm Biparjoy seem to have come to the rescue in lowering power demand in the country.

Analysts said demand is unlikely to touch 229 gigawatts as estimated by the Power Ministry earlier this year.

The rains have affected demand by lowering temperatures and reducing the use of cooling appliances such as air conditioners, which consume a significant amount of power.

With the onset of monsoon in the entire country by July, the seasonal rains will once again contribute to a decrease in the demand for power.

The unusually early onset of hot weather — and forecasts that power consumption will rise as irrigation pumps and air conditioners are cranked up — is fuelling concern that the nation’s energy network will come under new strain, after two successive years of disruptions.

However, much to the relief of those monitoring the power situation, peak demand fell to around 211GW on June 15 after hitting around 223GW on June 9.

The power ministry has taken measures to ensure sufficient supply.

Imported coal-based power plants were instructed to operate at full capacity from March 16, 2023, to June 15, 2023, to meet any unforeseen surge in electricity demand.

This timeline has been further extended by three and a half months until September 30, 2023.

It has also advised domestic coal-based thermal power plants to import coal for blending purposes, aiming to prevent any fuel shortage.

The government data showed that peak power demand met was 215.97GW in April and 221.34GW in May this year, with a marginal shortfall of 170MW in April and 23MW in May, likely due to technical reasons.

Tata Power

Tata Power has planned to double its capital expenditure to Rs 12,000 crore in the current fiscal, with a focus on renewables, distribution, transmission and solar equipment manufacturing capacity.

The capex is double that of 2022-23, Tata Power chairman Natarajan Chandrasekaran said while addressing the 104th AGM on Monday.

“Your company plans to fund these projects largely from internal accruals and cash on books,” he told the shareholders.