Tamil Nadu’s power demand crashed by 28.6% in April, as against the corresponding month last year, amid the COVID-19 lockdown which led to a decline in consumption by commercial and industrial establishments.
According to data from the Central Electricity Authority, the State’s peak demand slipped to 11,398 MW in April from 15,972 MW in the corresponding period last year.
The peak demand in March was 15,347 MW.
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Tamil Nadu has the highest number of factories in India and is a key manufacturing State with the presence of major automotive, auto components and other power intensive sectors.
Other major manufacturing States such as Maharashtra saw a decline of 17.9% in power demand, while Gujarat saw a decline of 26.1% in April.
The demand for power was expected to be revived with the relaxation in lockdown guidelines for certain economic activities and the increasing demand from domestic consumers with the onset of summer, India Ratings and Research said.
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“Power consumption by industrial and commercial users has drastically fallen in April and May due to the lockdown. Generation from rooftop solar systems were also at a peak during these times and had been put to use for those functioning under essential segments,” K.E. Raghunathan, former national president of the All India Manufacturers’ Organisation, said.
He said that even in June, the consumption by industries was expected to be at 25-30% of the level in the corresponding period last year.
In case of offices, the power demand might fall by 40-50% when compared to last year, as most employees were asked to work from home, Mr. Raghunathan said.
The low demand had led to a fall below ₹3 per unit in short-term power prices in energy exchanges.
According to Indian Energy Exchange, the low prices have prompted utilities from Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab to continue procuring power through energy exchanges.