India's Energy Demand Set To Grow At 5.5% In FY25: Ind-Ra

ENA Sectors 2024-11-26 17:27:59 New Delhi, Nov 26 (KNN) India's energy requirement is projected to grow at 5.5 percent year-over-year in the current fiscal year, a slight moderation from previous years' robust expansion, according to a recent report by India Ratings and Research (Ind-Ra). The forecast reflects a nuanced energy demand trajectory influenced by complex environmental and economic factors. Extreme weather conditions significantly impacted energy consumption patterns during the first two quarters of fiscal year 2025. The first quarter witnessed a substantial 10.9 percent year-over-year demand increase, while the second quarter saw a marginal 0.1 percent growth. A notable peak occurred in May 2024, when all-India electricity demand reached an unprecedented 250 gigawatts, representing a 13 percent year-over-year surge. The summer of 2024 presented unique challenges and opportunities in power generation. Heightened demand was effectively managed through strategic interventions, including enhanced coal supply and directives enabling thermal and gas-based power plants to operate at increased capacities. Thermal energy continues to dominate the national energy mix, comprising nearly 73 percent of total generation during the first seven months of the fiscal year. Renewable energy emerges as a critical component of India's evolving energy strategy. While currently accounting for 45 percent of the total 453-gigawatt generation capacity, renewables are expected to contribute 23 percent of power generation in the current fiscal year. The sector demonstrates promising growth, with approximately 80 gigawatts of solar, wind, and hybrid capacities under construction and an additional 95 gigawatts in various developmental stages. Bharath Kumar Reddy, Associate Director of Infrastructure, Ind-Ra, highlighted the complex dynamics shaping energy demand. Excess rainfall during the year led to reduced power requirements for irrigation and cooling, coinciding with a moderation in industrial growth. Despite the rising prominence of renewable energy, Reddy emphasised that fossil fuel sources will remain predominant in the short to medium term. The report underscores ongoing challenges in renewable energy implementation. While auction activities have been steady, with a growing focus on storage-linked and hybrid projects, execution remains contingent upon addressing connectivity and implementation hurdles. Ind-Ra anticipates 28-30 gigawatts of renewable energy capacity addition this fiscal year, with 11 gigawatts already achieved in the first half, predominantly in solar infrastructure. As India continues to balance its energy requirements with sustainable development goals, the current fiscal year represents a critical juncture in the nation's energy transformation journey. (KNN Bureau) 40049 https://knnindia.co.in/news/newsdetails/sectors/indias-energy-demand-set-to-grow-at-55-in-fy25-ind-ra 2024-11-26 17:27:59 knnindia.co.in India's Energy Demand Set To Grow At 5.5% In FY25: Ind-Ra