New Delhi: Signalling economic recovery, all-India peak power demand crossed the 200-GW mark on Wednesday afternoon, setting a new record. The news was shared by Power Minister RK Singh in a tweet: "All India power-demand crossed 200 GW at 1201 hrs today." The new record has been reached a day after all-India peak power demand crossed 197.06 GW. The previous high was recorded on June 30 when all-India electricity demand touched 191.24 GW. Before that, India had recorded a peak power demand of 189.64 GW on January 31 this year.
The frequent rise in all-India peak power demand also comes in the backdrop of a sharp rise in temperatures in northern India as a large part of the country is yet to receive Monsoon showers.
Since industrial and agricultural power consumption account for 41.16 percent and 17.69 percent, respectively, of the total electricity consumption, a rise in power demand signifies a rise in industrial and agricultural activities. Commercial electricity consumption accounts for 8.24 percent. Therefore, it can be assumed that the upward trend is being backed by a revival of economic activities as the second wave of COVID-19 recedes.
The news comes a day after the Ministry of Power allowed discoms to exit power purchase agreements (PPAs) with projects that have completed 25 years. The move is a major reform for the power sector as it will help discoms terminate an old PPA if it fails to be economical in terms of power tariff. In addition, it will also push power generating companies to find ways to rationalise tariffs further in order to deal with the competition posed by other routes for procurement of power, like the real-time market (RTM), Green Term Ahead Market (GTAM), etc.
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