India's peak time power deficit rose to its highest in about a year and a half as demand rose and supply remained constrained.
The gap between peak electricity consumption and the average supply stood at 2 percent in September, the highest since April last year, India Ratings and Research said in a report.
Major spikes in demand occur during heat waves and winter when consumers turn on appliances to either cool down or warm homes, workplaces and other spaces. Peak demand may result in power outages.
India Ratings said power generation grew 4.5 percent year-on-year in September due to higher thermal output. Lower wind and nuclear power production increased dependence on coal-fired units that meet nearly three-quarters of India's demand. That led to a shortage of fuel at plants, especially after consumption spiked during the festival season.
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Higher thermal generation and lower coal production in six months to September brought inventory levels to an all-time low of 8.5 million metric tonnes. Prices at power exchanges increased to Rs 4.09 per unit due to an increased demand-supply imbalance, the report said.
In September, all India peak demand increased 1.4 percent year on year to 161.8 gigawatts, according to the report. Peak supply improved 1 percent to 158.5 GW, leaving a deficit of about 3.2 GW.
North India continued to report a higher deficit, majorly due to Uttar Pradesh and Jammu and Kashmir. Uttar Pradesh's peak power demand increased to 20.0 GW in September from 17.1 GW a year ago, the report said.
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