New Delhi: Power demand in the country rose by 7 percent on an annual basis in the three months that ended in March, according to a report. Rating agency Crisil in its latest report also said that in March, there was a year-on-year decline of 1.3 percent in power demand. "Although the month (March) saw a decline in demand, the fourth quarter of fiscal 2023 witnessed a 7 percent on-year growth as January and February had seen demand grow 13.7 percent and 10 percent, respectively," it said.

Growth in March was led by increased heating requirements & robust economic growth

The growth in the March quarter was led by the increased heating requirement in winter months and robust economic activity, it added.
The report also said that despite the drop in power demand in March, prices increased by 13 percent on y-o-y basis in the fourth quarter of last fiscal.

As per the report, in fiscal 2024, soaring temperature and resilient economic activity are expected to keep power demand growing. On average, the first quarter of this fiscal should see power demand grow by 4 percent on a y-o-y basis on a high base of the previous year, it noted.

In fiscal 2024, given predictions of heat waves that will increase usage of air conditioners, fans, and refrigeration units, peak electricity demand should touch a record high, the report said. India's peak power demand is expected to grow to 230 GW in the first quarter of fiscal 2024, rising 6.5 percent on a year-on-year basis.

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