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Key Points

India's electricity demand rebounded in July after declining in May and June. Hydropower generation jumped 36% due to good monsoon rains, while renewables also grew. Coal's share in power output dipped as supply remained stable. Analysts expect moderate demand growth this fiscal year.

Key Points: India's Power Demand Rises 2.4% in July After Summer Slump

  • Power demand rose 2.4% YoY in July to 154 BUs
  • Hydropower surged 36% due to higher rainfall
  • Coal's share in power output fell to 63% from 66%
  • Crisil forecasts 2.5-3.5% demand growth this fiscal
2 min read

Electricity demand grows in July after two months of degrowth

India's electricity demand rebounds in July with 154 BUs consumed, driven by industrial activity and lower real-time power prices amid surplus supply.

"The improvement in demand contrasts sharply with May and June, which saw YoY degrowth – Crisil Intelligence"

New Delhi, Aug 12

India's power demand rose by 2.4 per cent in July, reaching 154 billion units (BUs), up from 150 BUs a year earlier, driven by strong industrial activity, a report said on Monday.

The improvement in demand is in sharp contrast to May and June, which saw YoY degrowth of 4.8 per cent and 2.3 per cent, respectively, according to a report from Crisil Intelligence.

In July, the average market clearing price (MCP) in the real-time market (RTM) fell 23 per cent YoY to Rs 3.83 per unit, indicating sufficient supply amid low electricity demand. The spread between RTM and DAM (day-ahead market) volumes declined to 401 million units (MU) in July, down from an average of 2,529 MU from June 2020 to July 2025.

While generation from thermal power declined year-on-year this July, that from major clean energy sources, i.e., hydro and renewable energy, increased. Higher rainfall resulted in a 36 per cent YoY rise in hydropower generation, while renewable energy rose 7.2 per cent, the report said.

Consequently, coal accounted for 63 per cent of the total power output from 66 per cent a year ago, which also highlighted the easy ability of the fuel to be ramped up or down by power demand. Coal inventory stood at 18 days, compared with 21 days in May and June. As of July 31, thermal power plants had 54 million tonnes (MT) of coal stock.

Crisil Intelligence estimates a 2.5 to 3.5 per cent YoY growth in power demand in this fiscal year to around 1,745 BU, marking a moderation from 4.2 per cent last fiscal year.

The IMD estimates another good southwest monsoon season. The consequent lowering of ambient temperature is expected to curb electricity demand.

–IANS

- IANS

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Reader Comments

P
Priya S
The reduction in coal dependency from 66% to 63% is a small but positive step. We need to accelerate this transition to cleaner energy while ensuring stable power supply. Monsoon helping hydro power is great news!
A
Aman W
While the numbers look good, I'm concerned about coal stocks reducing to 18 days. We've seen power shortages before when coal supplies run low. Better planning needed for peak demand seasons.
S
Sarah B
Interesting to see how weather impacts electricity demand so much in India. The monsoon both increases hydro power and reduces cooling needs. Climate change will make this balancing act even harder in coming years.
V
Vikram M
The price drop in real-time market is good for consumers. But we need more transparency - how much of this benefit actually reaches common people through reduced electricity bills?
N
Nisha Z
As someone from Uttarakhand, I'm happy to see hydro power generation up by 36%! Our state has great potential for renewable energy. Hope more investments come to hilly regions for sustainable power projects. ⛰️

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