By Sudarshan Varadhan and Gabrielle Ng
SINGAPORE- India’s electricity generation grew at its slowest pace in 2024 since the COVID-19 pandemic, an analysis of federal grid regulator data showed, hit by a slowdown in the world’s fastest growing major economy.
Power output rose 5.8 percent annually to 1,824.13 billion kilowatt-hours (kWh), an analysis of daily load despatch data from federal grid regulator Grid-India showed.
Growth in power generation averaged 2.3 percent in the year’s second half, nearly a quarter of the first half’s rise of 9.6 percent, the data showed.
The slackening electricity generation was in line with a softening economy, which grew at the slowest pace in nearly two years during the quarter that ended on Sept. 30.
The slowdown has not shown signs of easing significantly, with India’s manufacturing activity growing in December at its weakest pace for the year, amid weaker demand.
However, analysts expect a pickup in industrial activity and residential power use stemming from adverse weather to drive growth of 6 percent to 7 percent in electricity use in 2025.
“Demand has already picked up in December, with mercury levels dropping and increased usage of heating systems,” said Sooraj Narayan, head of Asia-Pacific power modelling at consultancy Wood Mackenzie. —Reuters
