The gamut of steps to improve electricity access might lead to a supply shortage scenario after FY23, warranting ‘an immediate need to restart the capex cycle in generation’, according to analysts. “Our existing capacity and pipeline can at best meet projected peak demand till FY23, post which we will start running peak deficit,” ICICI Securities said in a recent note.
Peak power demand of the country breached the 180 giga-watt (GW) mark in October, 9.8% higher than the highest requirement recorded in FY18. Peak power demand have been increasing at a compound annual growth rate of 2.6% between FY15 and FY18.
The rise in power demand coincides with the rampant addition of household connection under the government’s Saubhagya scheme and the reduction in the average duration of power cuts. Read More