India experienced a significant surge in power demand during the month of June, propelled by an intense heatwave that gripped several regions across the country.
According to a recent report by Crisil, North India witnessed a staggering 22% year-on-year increase in power consumption, driven primarily by temperatures soaring 5-8 degrees Celsius above normal. This heightened demand was largely attributed to the heightened use of cooling appliances to combat the sweltering conditions. The spike in power consumption wasn’t confined to North India alone. The Northeastern region saw an 8.3% rise, while the eastern and western regions registered increases of 7.8% and 3.5%, respectively. However, the southern states experienced a slight decline of 5.1% in power consumption, providing a contrasting trend amidst the overall surge.
Despite the early onset of the Southwest Monsoon in certain parts of the country, many districts continue to face rainfall deficits. As of early July, data from 724 districts revealed that 38% reported deficient rainfall, with North India particularly affected as half of its 209 districts recorded deficits. The western region also faced challenges, with 33% of its 159 districts reporting rainfall deficits, highlighting concerns over agricultural productivity and water scarcity. Beyond climatic factors, the increase in economic activities has also contributed significantly to the rise in power demand. Robust economic indicators, including increased buying levels and expanded new orders and output, have further fueled the uptick in energy consumption across industrial and residential sectors.
In June, peak power consumption reached 245.41 GW, following a historic high of 250 GW in May, underscoring the robust demand dynamics. Power output for the month is estimated to have risen approximately 8% year-on-year, reaching around 160 billion units (BUs). Notably, the share of coal in electricity generation increased by 6.7% in the first quarter of fiscal 2025, maintaining its pivotal role despite marginal increases in the shares of gas and hydroelectric power. Renewable energy sources witnessed a marginal decline of 0.84% year-on-year, largely attributed to a 7% decrease in wind generation, while solar energy generation saw a commendable 19% rise during the period.
