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Rating agency Crisil in its latest report has said that power demand in the country rose 7 per cent on an annual basis in the three months ended March (Q4). The growth in the March quarter was led by increased heating requirement in winter months and robust economic activity.

It mentioned ‘Although the month (March) saw a decline in demand, the fourth quarter of fiscal 2023 witnessed a 7 per cent on-year growth as January and February had seen demand grow 13.7 per cent and 10 per cent, respectively.’

Further, it said that in March, there was a year-on-year decline of 1.3 per cent in power demand. The report also said that despite the drop in power demand in March, prices increased 13 per cent on-year in the fourth quarter of last fiscal.

As per the report, in fiscal 2024, soaring temperature and resilient economic activity are expected to keep power demand growing. It noted on average, the first quarter of this fiscal should see power demand grow 4 per cent on-year on a high base of the previous year. Moreover, it said in fiscal 2024, given predictions of heat waves that will increase usage of air conditioners, fans, and refrigeration units, peak electricity demand should touch a record high.