Least-industrialized states lead the recovery of electricity demand

India’s less industrialized states have led the recovery in electricity demand that began in September, a Reuters analysis of government data shows.

Electricity use in less industrialized states like Bihar and Chhattisgarh in the east and Uttar Pradesh and Punjab in the north, increased by 10% over the previous year, ending on March 31 for both the quarter and six months, data showed. .

All these states – which have high agricultural and residential electricity consumption – consumed more electricity than the previous year, although India’s annual electricity demand fell for the first time in at least 35 years in 2020/21.

The implementation of the coronavirus lockdown has led to a decline in power consumption for six straight months through August, but consumption has risen for seven consecutive months, with usage in March growing at the fastest pace in 11years.

Industries and offices account for half of the country’s annual electricity consumption. Senior government leaders, including Prime Minister Narendra Modi, have cited an improvement in power demand as a sign that the economy is also recovering from its worst recession in decades.

According to an analysis of daily load dispatch data from the federal electricity grid regulator POSOCO, more industrialized states such as Maharashtra, Tamil Nadu and Gujarat saw a decline in annual electricity usage during 2020/21.

The increase in electricity demand in Maharashtra and Tamil Nadu has lagged behind the national average in the last seven years, but consumption in Gujarat has grown faster than the national average during that period, government data shows.

During the latest quarter, power consumption in India’s most industrialized state Maharashtra grew by 7.3%.

However, Tamil Nadu – where a large number of major automakers are located – saw a 2.8% drop in its electricity consumption in the same period.

Consumption grew by 9.4% in the western state of Gujarat during the quarter, but it fell largely in Karnataka – a southern state with a large tech industry.