India's Electricity Demand Growth Recovers Marginally In Oct: Icra

While talking about the country's power sector, the rating agency Icra in a report has said that India's electricity demand growth recovered marginally in October 2024 after two consecutive months of negative demand growth.

The rating agency stated that the demand increased by 1.3 per cent during the first 29 days of October 2024 on a year-on-year (YoY) basis, as per Power System Operation Corporation (POSOCO) data. 

All-India electricity demand growth turned negative in August 2024 and September 2024 after remaining healthy during the first four months of FY2025. This is owing to an unfavorable base and the adverse impact of heavy rainfall, Icra added. 

While there is a moderation in growth in recent months, the full-year demand growth is expected to remain healthy at 6.0 to 6.5 per cent, according to the report.

The average tariffs in the day-ahead market (DAM) of the Indian Energy Exchange (IEX) stood at Rs. 4.0 per unit in October 2024, marginally lower than Rs. 4.2 per unit in September 2024, given the subdued demand growth and improvement in generation from hydro and nuclear power sources. 

Nonetheless, the tariffs continue to remain higher than the historical average, thus remaining positive for projects exposed to the merchant market, it noted.

Meanwhile, the coal stock levels at power plants declined to 11.6 days as on 28 October 2024, from 12.1 days as on 30 September 2024. While the stocks remained below the normative level, they were better than the year-ago figures.

Moreover, the government extended its order to blend imported coal by thermal power stations to ensure adequate coal stock levels.