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Power Generation Market in India H1 2020

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Report Summary The novel coronavirus disease or COVID 19, a global pandemic has affected all the sectors of the Indian economy and the power generation sector is no different

Power Generation Market in India H1 2020

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    The nationwide lockdown has led to power generation segment to take a hit as the electricity demand faltered due to very minimal industrial and commercial load

    The novel coronavirus disease or Covid-19, a global pandemic has affected all the sectors of the Indian economy, and the power generation sector is no different although its impact is less pronounced, as it is the most essential commodity in the present time which is necessary for almost all activities. But the nationwide lockdown led to all constructional activities at power projects to a standstill leading to less capacity addition and delays in project execution which is evident from the fact that only close to 2 GW of new capacity was added between December 2019 till May 2020. The raw material availability especially solar PV modules and also construction material was impacted due to the supply chain disruptions caused during the lockdown which led to low solar capacity additions of nearly 1.2 GW till May 2020 since Dec 2019. The power demand has been hit due to the closure of industrial and commercial complexes during the lockdown which has led to the shutting down of many thermal power units in this period although the renewable power plants have not been impacted due to the government's decision to give them must-run status. Due to the lockdown, the electric power demand in the country has declined significantly, worst decline are observed in southern and western regions with national demand tanking by 19%. The demand has seen a reduction of ~ 680 GWh from March 18 to April 18, 2020, which is a worrying sign for the power generation market.

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