Weekly Power Sector Round up: 19th June 2021

India’s power consumption grows 9.3% in the first half of June

Power consumption in the country grew 9.3% in the first half of June to 55.86 billion units (BU) year-on-year, as compared to the 51.10 BU recorded in same period last year, indicating a slow recovery in demand.

Despite the low base of last year, recovery hasn’t been as strong in part due to the restrictions still in place to contain the second wave of COVID-19 and in part due to the early onset of the monsoon season this year.

Project returns to be moderated by rise in imported Solar PV module price: ICRA

Rise in imported solar PV module prices will moderate returns for projects awarded over the last six to nine month period, according to rating agency ICRA. In the last 4-5 months, the price of imported solar PV modules has risen about 15-20% to around Rs 16-17 per watt.

The price rise has been largely driven by a sharp increase in the price of polysilicon, which is a key input for cell and module manufacturers. The recent surge in metal prices is also likely to adversely affect margins of solar developers.