India Forecasts Energy Surplus! For Now

According to  the Load Generation Balance Report 2016-17 released by the Central Electricity Authority of the Ministry of Power (Energy)  in India:

  • The country may have 1.1 percent excess electricity supplies in the year ending March 2017.  (The India expert notes this is largely due to elimination of down time and losses; India’ growing economy will soon consume this surplus)
  • A 2.6 percent surplus for the period is forecast for peak periods, when daily demand is highest
  • India’s power deficit reduced to below 1 percent in May, 2016

“The overall surplus estimation, while skewed due to the position in Western region, demonstrates the progress India has made in resolving fuel and power generation issues,” said Sambitosh Mohapatra, a partner at PwC India. “As the economy grows, state utilities’ finances improve, and rural electrification progresses, the surplus will get absorbed.”

Power Poles

Bloomberg reports: “Though supplies may surpass demand at a national level several parts of the country may continue to face shortages, according to the Central Electricity Authority. Part of the reason is that money-losing state distributors curtail power purchases and resort to blackouts. A plan to restructure their debt and make them profitable is underway.”

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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