India ranks third among all the electricity-producing countries and second in consuming electricity globally. The countrys installed power capacity was 392.02GW as of 2021. Power is an inevitable component in the growth of the economy and nation. Indias power generation portfolio involves various conventional sources such as coal, natural gas, oil, and renewable sources such as hydro, wind, solar, and waste. The major players include Adani Power Limited, CESC Limited, Damodar Valley Corporation, and NTPC Limited.

Market insights:

India is the third largest producer of electricity in the world. In FY 2021, year-on-year power generation dropped by -2.49% due to the economic slowdown. The electricity market faced a demand deficiency of -3.18 Bn Units, with a CAGR of 4.00% in FY 2021. The peak demand also declined by -0.80 GW, with a CAGR of 4.52%.

Segment insights:

In India, electricity generation primarily depends on thermal sources (coal, lignite, gas, and diesel). Thermal power generation accounts for 59.8% of the total production capacity. The country also has several renewable energy sources such as hydro, wind, and solar. The hydro and other renewable power sources have 11.9% and 26.5% share, respectively. Furthermore, India has a nuclear power generation capacity of 6.78 GW. Total Installed Generation Capacity of private, central, and state sectors account for 48.4%, 25.1%, and 26.5%, respectively.

COVID-19 impact analysis:

The pandemic and the resultant lockdown in 2021 imposed by the government hampered the power sector. Several industrial and commercial activities were stopped due to the lockdown, leading to a huge fall in the demand for electricity. During the lockdown, officegoers adopted remote working, increasing residential power demand. Electricity distribution companies also faced financial issues. The lockdown in 2021 also caused disruptions in coal mining, leading to a shortage of raw materials. In 2020, during the first lockdown the Government of India stopped all trade relations with China, therefore solar PV modules and electricity generation equipment are scarce. Consequently, there was a rapid fall in electricity demand during the lockdown.