As we discussed in Commodore Research's most recent Weekly Executive Report, India is on pace to produce 116.7 billion kilowatt hours of electricity this month. This would mark a month-on-month decline of 11.9 billion kilowatt hours (-9%) and a year-on-year decline of 4.4 billion kilowatt hours (-4%). This would mark the seventh time in the last eleven months that India’s total electricity production has contracted on a year-on-year basis. Significant for the dry bulk market is that coal-derived electricity generation is on pace to total 104.5 billion kilowatt hours. This would mark a month-on-month decline of 11.2 billion kilowatt hours (-10%) and a year-on-year decline of 5.4 billion kilowatt hours (-5%). This would mark the eighth time in the last eleven months that India’s coal-derived electricity production has contracted on a year-on-year basis.
As we have stressed often in our Weekly Executive Reports, such a sustained contraction in India’s coal-derived electricity generation is very rare. Much warmer than usual weather has continued throughout parts of India and remains a headwind on electricity demand. Hydropower production has also continued to grow. India’s economy has also faced struggles at times recently.
