India managed to post a strong end to a difficult year which was over-shadowed by strict COVID-19 norms, but that could not prevent fall in annual electricity generation after continual growth witnessed over the past years.
Data provided by power ministry showed that overall power output including renewable sources dropped to 1380.18 BU in FY ’21 against 1389.31 BU in FY ’20, in line with the contraction recorded in power demand.
Notably, imposition of lock-down resulted in a decline in power consumption for five straight months up to Aug ’20 during which economic activities were slowed down in view of the difficult market conditions.
Share of coal in annual power generation was reduced by the steady rise in output from renewable sources. However, the decline was limited by lower availability of hydro-power coupled with lessened generation scheduled for nuclear plants.
Overall, coal-fired generation fell for the second straight year to 950.75 BU, whilst its contribution in total output was recorded at 68.9% in FY ’21 against 69.2% in FY ’20.
Rally towards the final quarter:
Recovering from the tepid beginning to the fiscal, coal-fired power rose for seven straight months starting Sep ’20 which coincided with electricity demand returning to growth.
In particular, a late resurgence was seen in Mar ’21 where demand increased due to sharp rise in temperature compared to the previous year when the first phase of intense lock-down resulted in a dramatic fall in power usage.
Power generation by coal-fired plants registered a robust growth of 32% to 99.86 BU during the month, thereby enhancing coal’s share in energy mix to 76% in the final quarter.
While the trend is expected to continue in the new fiscal, a lot would depend upon the criticality of COVID situation as possibility of fresh restrictions pose a major threat to the economic revival and thereby power demand.
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