COVID-19 affects power demand

The outbreak of Coronavirus has impacted various sectors globally and domestically. The current lockdown that has been implemented pan India has forced a cut in power demand.

As a result of the lockdown, companies have shutdown and have instead asked their employees to work from home. Those continuing their operations are working at minimum capacity. Additionally, reduced buying by state distribution utilities has caused a slump in the power demand. Indian Railways, which is also one of the major power consumers, has stopped plying of passenger trains thus, causing a reduced power demand. The demand for power throughout India has till now dropped by more than 20 per cent to 1,21,937 megawatt (mw) from 1,54,045 mw whereas the power supply has also seen a decline to 29,750 lakh units (LU) from 35,650 LU.   

Despite a lack of demand for power from these institutions, residential or domestic power consumption seemed to balance the loss made. A sudden spike in the domestic power consumption was experienced in some areas of the country as a result of the maximum population staying at home. Additionally, rising hot weather conditions in southern and western states of India are expected to bring about some respite for power generators. Since discoms in the troubled power sector in India are stressed with heavy losses and dues during this time, power availability at lower rates can benefit them to improve their financial health. But if the state electricity departments fail to recover money from consumers, the power sector may continue to feel the pressure as distribution companies have halted payments to generation companies.