New Delhi. The cost of electricity in India is increasing continuously, whether it is domestic use or commercial use. However, there is also a good thing that the capacity to meet the tremendous demand of electricity being generated in the country is also developing here. The recently released handbook of the Council on Energy Environment and Water-CEF provides information on the growing electricity demand in India and the increased generation of electricity to meet that demand.
According to the CEEW-CEF handbook, India’s maximum power demand reached a new high of 211.9 GW in June 2022. This is the figure of demand which was also fulfilled during this period. Prolonged heat wave conditions and delay in monsoon have been a major reason behind the increase in power demand in the month of June. This is the reason that in all the months of the first quarter of the year 2022, April, May and June crossed the 200 GW mark. On the other hand, in the first quarter of the financial year 2022-23, the total electricity generated has increased by 16 percent. So the generation of electricity became 411 billion kilowatt-hours (kWh). Whereas in the first quarter of the last financial year, electricity generation was 354 billion kWh.
As far as power generation is concerned, the expansion in non-hydro renewable energy capacity during the quarter stood at 4.2 GW, which was almost 61 per cent higher than the capacity addition of 2.6 GW in the same period last fiscal. Apart from increasing investor interest in the sector, this sharp jump in capacity addition can be attributed to the low base effect in the corresponding quarter of last financial year, when there was a negative impact on setting up new capacity due to the COVID-19 pandemic lockdown. Had an effect.
Talking about the energy sector, 4.3 GW of power generation capacity was added in the first quarter of the current financial year, in which renewable energy accounted for 98 percent. If we look at the expansion of renewable energy, then solar energy dominated it. Solar energy accounted for 89 per cent of the total renewable energy capacity expansion of 4.2 GW. This was partly attributed to strong demand for grid-scale and rooftop solar, although the increase in wind power capacity was only 430 MW. In terms of auctioned capacity, new procurement forms such as hybrid renewable energy and floating solar accounted for 48 per cent of the 3.15 GW renewable energy capacity auctioned in the quarter.
Gagan Sidhu, Director, CEEW-CEF, said, “The continued low wind power capacity addition is a matter of concern, as India’s power sector transformation may not be based solely on solar energy, although there are some encouraging signs. In the first quarter of the current financial year, a significant 1,200 MW of wind capacity was auctioned. In the same period, 1,200 MW of wind-solar power hybrid capacity was also auctioned. In addition, wind power has also received a regulatory backing in recent weeks. The first step in this is to ban the reverse auctions for the electricity generated from wind energy for the lowest tariff (sale rate). The second step is to introduce a dedicated Renewable Purchase Obligation (RPO) for wind power capacity commissioned after March 2022. The first step is an age-old demand from the wind power sector, while the second step will create a regulatory demand.
FIRST PUBLISHED : August 04, 2022, 13:54 IST