The improvement in India's economic activities is expected to increase in FY22 power demand by 12 percent on a year-on-year basis, HDFC Securities said in a report.
As per to the report, revival in economic activity and low YoY base set off an rise in power generation by 10 percent YoY in July 2021.
Power generation has also surged in most of the states, following the growth in demand.
The report stated, "Power generation fell in Delhi, Punjab, Madhya Pradesh, Jammu and Kashmir and Gujarat."
The report said that the decline in generation in Gujarat is majorly due to a decline in the Mundra plant generation, that is attributable to a steep increase in imported coal prices, making the plant preposterous to operate at the current level.
The report also added that the rise in power generation was led by a strong growth across the coal and renewables (RES) segments.
The plant load factor (PLF) improved for the coal, hydro, nuclear and RES segments, while it decline for the gas segment.
Apart from this, the month of August witnessed has 15 percent YoY growth in demand and generation until August 15.