DelhiDesk India is set to experience a peak in demand for electricity in the coming weeks as temperatures soar. Despite adding significant capacity to its power production, outages are common in many parts of the country due to a mismatch between demand and supply. India has an installed power generation capacity of over 416 GW, but average capacity utilization fell from 84% in 2009-10 to 53.6% in 2021-22 before recovering to 66% in April 2023. Discoms, the middlemen between power producers and consumers, prioritize supplies to industrial consumers who can handle high voltage power and pay more, leading to outages in households where tariffs are low. With a projected increase in power demand, the government is investing 14.5 trillion for additional power generation capacity of 210 GW and upgrading the national grid with more transmission lines. However, the financial health of discoms needs to be improved, and state governments need to find the political will to privatize discoms while allowing them to hike tariffs in line with rising costs of production.

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👉 With temperatures soaring, demand for electricity is set to peak in the next few weeks.
👉 India consumed 1,503.65 billion units of electricity in 2022-23, a 9.4% rise over the previous year.
👉 Demand for power peaked at 215.89 GW in 2022-23, but has already surpassed that in the current financial year with a peak of 226.9 GW.
👉 India has an installed power generation capacity of over 416 GW, but average capacity utilization is only 66% due to erratic availability of coal.
👉 Large parts of the country are facing power outages between 2-8 hours daily, with 85% of households experiencing daily power cuts.
👉 Power distribution companies prioritize supplies to industrial consumers, resulting in outages for households.
👉 The government is investing 14.5 trillion for additional power generation capacity of 210 GW and upgrading the national grid with more transmission lines.
👉 State governments need to privatize discoms and allow them to hike tariffs in line with rising cost of production to improve their financial health and control outages.

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