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Case Code: ECON087
Case Length: 11 Pages
Period: 2018 - 2020
Pub Date: 2020
Teaching Note:Available
Price:Rs.300
Organization : Government agency
Industry :Energy
Countries : India
Themes: Micro Economics/Economic slowdown/Pricing
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Electricity Sector in India: Coping with Changes in Demand and Supply

 
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INTRODUCTION

 
On April 02, 2020, India’s electricity power demand dropped by 43 Gigawatts to 125.81 Gigawatts compared to the same day the previous year, amid a nationwide lockdown to contain the Covid-19 outbreak in the country. Over the years, India’s power sector had undergone significant changes to meet the increasing demand for power after the Government took measures to promote investment in the sector to hike power generation in the country. In 2018, the power demand in the country witnessed the fastest pace of growth since 2013. But it failed to maintain a similar pace in 2019. While power consumption rose at 1.1% in 2019, it was the slowest pace of growth since 2013. Power demand in the country dropped for the fifth straight month in December 2019. On the supply side, conventional sources of energy witnessed a growth of 1.15% during the seven months of the financial year 2020 (April 2019 to October 2019) . The growth was the slowest compared to the previous five years. Power supply continued to fall in December 2019 . Analysts said the key indicators of the health of India’s power sector, like demand and supply of power, painted a worrisome picture fueled by the economic slowdown. Some of the factors that impacted the power sector in the country were lower demand from the industrial sector, financial stress in the sector, energy efficiency measures, and the impact of the monsoon. ..

 

 
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