Power demand in India to fall 5% to 6% in FY21 due to COVID restrictions: ICRA
Periodic lockdown restrictions imposed in various parts of the country due to the ongoing COVID pandemic may drop the pan-India power demand 5% to 6% in FY2021, according to rating agency ICRA.
This drop in demand is expected to lower thermal power plants utilisation to about 50% in FY2021.
Consequently, the revenue gap for DISCOMs pan-India is expected to reach Rs. 420-450 billion for the financial year. Recovery of this revenue gap may be achieved by a tariff hike of 2%-3% across the board assuming a period of three years.
5.9GW Solar capacity added in FY20, 6.6GW to be added in FY21 in India
5.9GW of utility-scale solar capacity was added in India in the financial year 2019-20 and another 6.6GW is expected to be added in the 2020-21, according to a recent report by JMK Research and Analytics.
Further, 1.7GW of rooftop solar was installed in FY20. That number is set to decrease for FY21 with only 1.4GW of projects being expected to be commissioned.