Recovery in energy demand not abiding’:

Recovery in energy demand not abiding’:

Context

There is a need for sustained energy demand recovery which is still absent

What is the current scenario?

• The recent up-trend in electricity demand growth has led to a marginal improvement in the all India thermal PLF (plant load factor or capacity utilisation) to 59.9% for the first five months of 2017-18
• The recently introduced Saubhagya Scheme was launched in order to put a thrust on rural electrification which will improve the energy demand.

What are the concerned problems?

• A sustained demand recovery, however, is still absent
• Thus energy demand growth from the relatively high tariff paying industrial and commercial segments remained critical for both State distribution utilities and IPPs (Independent Power Producers)
• Also, the stressed thermal capacity in private IPP (independent power producers) segment remains sizeable at about 60 GW, despite the various policy level initiatives undertaken by the government.