Impact of COVID-19 on Power Procurement Planning in Indian State of Andhra Pradesh

The Administrator 61 (1), 96-111, February 2021

14 Pages Posted: 26 Apr 2021 Last revised: 28 Apr 2021

See all articles by Srikant Nagulapalli

Srikant Nagulapalli

Transmission Corporation of Andhra Pradesh (APTransco)

B. Srinivas

Transmission Corporation of Andhra Pradesh (APTransco)

Date Written: June 23, 2020

Abstract

Andhra Pradesh power sector with an annual turnover of about Rs. 40,000 Cr is one of the sectors severely affected due to imposition of lockdown. Power, a seasonally varying industry, records its maximum sales during the summer. This summer being affected by COVID-19, power sector income is likely to be affected.

Consumer category wise monthly sales data (domestic, commercial, industry, institutional and agriculture) available with distribution companies is a very valuable source of information to forecast the future sales as well as COVID impact on it. This paper obtained the sales data from Discoms and analysed the COVID impact on sales and income.

It is found that there is 22% fall in daily demand since lock down. 11% or 6300 MU fall is expected in overall energy sales for 2020-21 due to covid - 24% in Q1, 10% Q2, 7% in Q3. A16% or Rs 4700 Cr fall in overall income 2020-21 is expected due to COVID - 38% in Q1, 15% Q2, 9% in Q3.

COVID has affected the power sector at a time when there was a general trend of decline in energy consumption in subsidising sectors viz., industry and commercial. The recovery post COVID is going to become a challenge. A financial stimulus to the power sector to wipe out its debts, neutralise receivables from Government, and reforms in the sector bringing in mandatory competition at the retail level will be required to support the essential sector in the long run.

Keywords: Electricity Demand, Power Demand, COVID, COVID-19, Power Consumption, Electricity Consumption, Impact, Electricity Forecast

JEL Classification: C00, H00, H12, H4, H50, H60, H81,I15, P20, Q41, R11

Suggested Citation

Nagulapalli, Srikant and Srinivas, B., Impact of COVID-19 on Power Procurement Planning in Indian State of Andhra Pradesh (June 23, 2020). The Administrator 61 (1), 96-111, February 2021, Available at SSRN: https://ssrn.com/abstract=3832616 or http://dx.doi.org/10.2139/ssrn.3832616

Srikant Nagulapalli (Contact Author)

Transmission Corporation of Andhra Pradesh (APTransco) ( email )

India

B. Srinivas

Transmission Corporation of Andhra Pradesh (APTransco)

India

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