India's electricity generation recovered slightly in June, provisional government data showed, driven by increased power consumption in western industrial states.
June's power generation decreased by 9.9 per cent, according to Reuters' analysis of the day-to-day load dispatch data from the federal grid operator POSOCO, compared to a decrease of 14.3 per cent in May.
In the second half of June, electricity generation decreased by 5.3 per cent compared to 14.5 per cent during the first 15 days of the month.
Prime Minister Narendra Modi cited electricity consumption to show that there are "greenshoots" in the Indian economy.
India's unemployment rate more than halved in June compared to May, data from a private research firm showed Wednesday as economic activity resumed after the government eased pandemic lockdown restrictions.
Indian state refiners' sales of gasoline and gasoil increased in June compared to May, continuing with a gradual recovery. Manufacturing activity contracted at a much lower pace in June, suggesting that the worst may be over for the economy, at least for now.
The recovery in power demand in the second half of June was largely driven by higher consumption by industrial regions such as the western Maharashtra and Gujarat states and Delhi in the north. These regions are among the most affected by coronavirus disease.
Coal power generation – India's primary source of electricity – continued to decline in June. Coal's contribution to total electricity generation decreased to 61.6 per cent in June, compared to 64.2 per cent in May.
India 's hydropower supply increased at the expense of coal – increasing by 24.3 percent compared to 3.6 per cent in May, while gas-fired power output increased by more than 20.5 per cent, data showed.
Overall, renewable energy generation decreased by 3.8%, mainly due to a decrease of 14.7% in wind power generation. Solar power output increased by more than half to 5.6 per cent in June, compared to 12.7 per cent in May.
