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Mint
a day ago
- Business
- Mint
India's power grid gets a summer scare
New Delhi: India faced a power grid scare last week as electricity withdrawn from the transmission network exceeded the available capacity, raising fears about the grid's stability. The available transfer capability (ATC) in the western-to-northern corridor was about 22 gigawatts (GW) against the actual flow of 24.14 GW on 15 June, showed a notice sent to utilities by Grid India Corp. ATC is the volume of power that can be safely supplied between two points. The national power grid controller wrote to the generators and electricity distribution companies (discoms) in the northern region to either lower the withdrawal or ramp up generation. Also read: NHPC shelves plan for co-promoter stake buy in PTC India After temperatures eased in May, there was a heat wave in June, which would have increased the demand, mostly in northern India, leading to congestion, said Vikram V, vice-president and co-group head, corporate ratings, ICRA Ltd. A grid collapse is the worst-case scenario. Nearly 620 million people across 19 states and three Union territories went without electricity for hours together when the northern grid collapsed on 31 July 2012. In a wider blackout, the northern, eastern and north-eastern grids broke down on 1 August 2012. India now has a unified national grid. Vikram said instances of overdrawing were quite common till 2014-25, but have declined since then. Usually, in case of congestion, the grid operator may direct the utilities to reduce the offtake to avert any kind of impact on the grid. Issues arise when discoms draw larger than scheduled power from the inter-state grid to meet the high demand, he said. Addressing entities in the northern region 'over-drawing or under-injecting" power to the grid, the controller's notice said: 'The following regional entities, which are downstream of the congested corridor, are advised to reduce their drawal/increase their generation to decongest the system." Also read: EESL signs energy efficiency pacts worth ₹500 crore Grid India told the utilities in western and southern India to increase demand or decrease generation to decongest the corridor. 'This is a warning notice before levy of congestion charges and issued in accordance with the Central Electricity Regulatory Commission (Measures to relieve congestion in real time operation) Regulations 2009," the notice said. The peak power demand of the country hit 241 GW, the highest this year, on 11 June. That day, the peak demand in the national capital reached 8,231 MW, nearing the record of 8,656 MW recorded last year. The peak demand on 15 June was 226 GW, also on the higher end. Tardy grid expansion Experts suggest that grid expansion is key for reducing incidences of congestion. More so when the installed renewable energy capacity has been rising. Although the government has an ambitious road map to expand the grid, progress has been slow amid land acquisition and right-of-way issues. Data from the Central Electricity Authority (CEA) showed that in FY25, only 8,830 circuit kilometres (ckm) of transmission lines were added, 37.8% lower than 14,203 ckm in the previous fiscal and way short of the target of 15,253 ckm. Mint earlier reported that clouds over vast swathes of north India in May had caused abrupt dips in solar power production, raising worries about the stability of the power grid that serves millions of Indians. Also read: Top power authority mulls sops for critical components as China curbs rare earth supply In February, the national grid operator asked all electricity companies to be alert and supply power to preserve the grid's stability. An analysis by the International Energy Agency (IEA) in March said that countries seeking to prevent or address grid congestion should adopt a proactive approach to grid expansion by means of anticipatory planning and regulatory reforms that incentivize investments in line with countries' energy policy priorities. Congestion can also be mitigated by implementing grid-enhancing technologies, increasing transparency on available capacity, and creating regulatory frameworks and clear price signals to unlock flexibility from consumers, producers and energy-storage assets connected to the grid.
New Indian Express
28-05-2025
- Business
- New Indian Express
Discoms losses at all-India level witnessed decline in FY24
Discoms losses at the all-India level witnessed a decline in FY24 compared to FY23, led by higher tariffs and subsidy grants from state governments, according to a report by ICRA. The report also noted that the gap between the cost of supply and tariff realisation persists across most states. Moreover, the gross debt for state-owned Discoms witnessed a sharp increase to Rs 7.4 trillion as of March 2024 from Rs 6.6 trillion in March 2023, driven by debt availed to clear past dues to generators and to fund working capital and capex amid continued losses. "The tariff orders for FY2026 have been issued in 19 out of the 28 states as of May 25, reflecting moderate progress in the issuance of tariff orders," said Vikram V. 'Despite the loss-making operations of the Discoms, the tariff hikes approved for FY26 remain muted across most states, similar to FY2025.' The report also noted that India's power demand growth for FY26 is expected to be 5.0-5.5%, lower than the expectation for GDP growth for this fiscal (6.5%) due to the early onset of monsoon. The above-average rainfall will dampen demand for cooling as well as demand from the agriculture segment. According to the rating agency, the demand growth in FY2026 is expected to be higher than the 4.2% reported in FY25, but it is expected to trail the over 8.0% growth seen during FY2022-24.
Time of India
28-05-2025
- Business
- Time of India
India's power demand to grow 6-6.5% annually through FY2030, driven by EVs, data centres, green Hydrogen: Icra
India's power demand is projected to grow by 6.0–6.5 per cent annually over the next five years, driven by accelerating electric vehicle (EV) adoption, rapid expansion of data centres, and the development of green hydrogen projects, according to ICRA. Tired of too many ads? go ad free now 'These three segments are expected to contribute to 20–25 per cent of the incremental demand over the next five-year period from FY2026 to FY2030,' said Vikram V, Vice President & Co-Group Head - Corporate Ratings, ICRA, quoted by ANI. However, he also claimed that this rising demand for grid capacity could be partially offset by the increasing uptake of rooftop solar and off-grid solutions, aided by initiatives like the Pradhan Mantri Surya Ghar Yojana. The report highlights that the EV sector will see broad-based growth, led by three-wheelers, followed by two-wheelers, electric buses and passenger vehicles. For FY2026, ICRA expects a strong thermal plant load factor of 70 per cent, backed by a projected power demand growth of 5.0–5.5 per cent. Total power generation capacity is forecast to rise to 44 GW in FY2026, up from 34 GW in FY2024, with contributions from both renewable and thermal sources. 'The thermal segment is expected to add 9–10 GW capacity in FY2026, while the remaining capacity addition will primarily come from renewable energy,' the agency said. While renewables will continue to dominate capacity growth, ICRA noted a significant uptick in thermal projects under construction, which currently exceed 40 GW. The agency also observed that the expected FY2026 demand growth of 5.0–5.5 per cent is slightly below its GDP growth forecast of 6.5 per cent for the same period, attributing the gap to the anticipated early onset and above-average monsoon, which tends to dampen cooling and agricultural power demand.
Mint
28-05-2025
- Business
- Mint
India's power demand to grow 5.5% in FY26: Icra
New Delhi: Power demand is expected to grow 5-5.5% in the current fiscal year, according to estimates by Icra Ltd. Although this is higher than the 4.2% growth last fiscal (FY25), it would be slower than the 7-9% growth seen in FY 2022-24. The projected growth is lower than expected GDP growth for this fiscal year at 6.5%. Analysts suggest that had the country not seen an early onset of the monsoon, the power demand would have been much closer to the GDP growth rate. "Icra projects the full-year demand growth for FY2026 at 5.0-5.5%, lower than its expectation for the GDP growth for this fiscal (6.5%). This is owing to the early onset of the monsoon and expectations of an above average monsoon, which dampens the demand for cooling as well as demand from the agriculture segment. While the demand growth in FY2026 is expected to be higher than the 4.2% reported in FY2025, it is expected to trail the over-8% growth seen during FY2022-2024," said a statement from Icra. It said the total generation capacity addition in FY25 may reach 44 GW, including both thermal and renewable, logging a 29.41% increase compared with 34 GW in FY24, with the overall installed power generation capacity reaching close to 520 GW by March 2026. The rating agency also projected the all-India thermal plant load factor (PLF) level to remain flat at 70% in FY2026 against 69.5% in FY2025. PLF measures how efficiently a plant utilizes its capacity. Icra attributed this increase in PLF to the growth in generation expected from renewable sources and 9-10 GW capacity addition expected in the thermal segment in FY2026. 'Over the next five years, Icra expects the electricity demand to achieve a healthy compounded annual growth rate CAGR of 6-6.5%, higher than the 5% CAGR achieved over the past decade, driven by the demand from rising adoption of electric vehicles, green hydrogen and the increase in data centre capacity,' said Vikram V, vice president & co-group head - corporate ratings, Icra. The thermal segment is expected to add 9-10 GW capacity in FY2026, with the balance largely contributed by renewables. While renewable energy would remain the key driver of the generation capacity addition going forward, Icra said thermal has seen an increase in under-construction capacity over the past 12 months and currently stands at over 40 GW. The statement also noted that the coal stock for domestic power plants is at a five-year high at around 20 days as of 21 May 21, following improved supply and a slowdown in thermal generation growth. It said distribution companies' losses at the all-India level had witnessed a decline in FY2024 over FY2023, led by higher tariff and subsidy along with the revenue grants from state governments to fund previous year's losses. However, the gap between the cost of supply and tariff realization persists across most states. Moreover, the gross debt for state-owned discoms' witnessed a sharp increase to Rs. 7.4 trillion as of March 2024 from Rs. 6.6 trillion in March 2024, driven by debt availed to clear the past dues to generators and to fund working capital and capex amid continued losses, it said, adding that such high debt levels are unsustainable for discoms, given their current revenues and profitability. Commenting on the distribution segment, Vikram V said: 'Icra's outlook for the power distribution segment remains negative amid limited tariff hikes and continued loss-making operations. The progress in the smart metering programme along with the timely implementation of fuel & power purchase cost adjustment framework would play an important role in improving the discom finances, going forward.'
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Business Standard
28-05-2025
- Business
- Business Standard
Power demand to increase by 6-6.5% over next five years, says ICRA
ICRA attributes the growth in demand to greater adoption of electric vehicles and green hydrogen segments, and the expansion of power-hungry data centres Aman Sahu New Delhi India's energy demand is expected to grow in the range of 6–6.5 per cent over the next five years, ratings agency ICRA said on Wednesday. ICRA said that the growth in demand is attributable to the growing adoption of electric vehicles and green hydrogen segments, as well as the expansion of data centres, which require sizeable amounts of electricity to power their servers. "Over the next five years, ICRA expects the electricity demand to achieve a CAGR (compound annual growth rate) of 6–6.5 per cent, driven by the demand from rising adoption of electric vehicles (EVs), green hydrogen (GH), and the increase in data centre capacity," said Vikram V, vice president & co-group head (corporate ratings) at ICRA, in a webinar. These three segments are expected to contribute to 20–25 per cent of the incremental demand over the next five-year period from FY26 to FY30, he said. Vikram said that the demand for grid capacity is expected to slightly reduce due to more people using rooftop solar panels and off-grid projects, as the government is promoting clean energy generation schemes such as the PM Surya Ghar Yojana. The generation capacity expansion is projected to reach an all-time high of 44 GW in FY26, beating the record of 34 GW in FY25, with the overall installed power generation capacity reaching close to 520 GW by March 2026. On the other hand, as Business Standard reported on May 27, due to the early onset of monsoon in India, the power demand in the country this year has not taken off as expected, leading to excess stock with coal production companies in the week. The national grid has not seen aggregate demand soar beyond 220 GW even on the worst of days so far this summer. The softer demand for power has also kept the price of coal imports low. Even as India is pushing for renewable energy, ICRA, however, maintains a stable outlook for the thermal power segment.
