India’s electricity demand fell by nearly 1.5% in the April–June quarter compared to the same period last year, marking the first drop in power consumption since the 2020 pandemic-induced economic halt. According to government data from the Central Electricity Authority, total demand during the quarter reached 445.8 billion kilowatt hours. Bloomberg News calculations confirm this is the first quarterly contraction in four years.
The decline has been attributed to a cooler summer, which led to reduced use of air conditioners and other energy-intensive appliances. India’s electricity demand usually peaks during the summer months as temperatures soar. However, this year’s milder conditions meant the country did not see a surge in peak demand. If the maximum load stays below last year’s 250 gigawatts, it would mark the first annual drop in peak demand in at least two decades.
The change is raising concerns among both government officials and industry players. The increasing influence of climate variability on power usage is making it harder to forecast future consumption and plan infrastructure investments. The erratic demand patterns complicate long-term planning for generation and capacity.
Coal-fired power plants, which typically contribute nearly 75% of India’s electricity supply, bore the brunt of this drop in demand. Coal power output declined by 7% over the quarter. The average plant load factor — a measure of how intensively power plants are used — fell to 69.6%, compared to 76.6% in the same period last year.
While coal generation fell, output from other sources rose. Nuclear and hydropower generation recorded an uptick, and renewable energy sources registered a sharp jump. Renewable power generation surged by almost 23% during April and May, based on the most recent figures available.
The slowdown in demand has also had a knock-on effect on electricity markets. Spot power prices have slumped close to pandemic-era lows, according to previous reports, further underlining the broader impact of this seasonal cool-off.
As India’s power planners confront these new variables, the interplay between weather patterns and electricity use is becoming a major area of concern. The shift in consumption behaviour and seasonal variability is testing the resilience and flexibility of the country’s energy ecosystem.
(with Bloomberg inputs)
The decline has been attributed to a cooler summer, which led to reduced use of air conditioners and other energy-intensive appliances. India’s electricity demand usually peaks during the summer months as temperatures soar. However, this year’s milder conditions meant the country did not see a surge in peak demand. If the maximum load stays below last year’s 250 gigawatts, it would mark the first annual drop in peak demand in at least two decades.
The change is raising concerns among both government officials and industry players. The increasing influence of climate variability on power usage is making it harder to forecast future consumption and plan infrastructure investments. The erratic demand patterns complicate long-term planning for generation and capacity.
Coal-fired power plants, which typically contribute nearly 75% of India’s electricity supply, bore the brunt of this drop in demand. Coal power output declined by 7% over the quarter. The average plant load factor — a measure of how intensively power plants are used — fell to 69.6%, compared to 76.6% in the same period last year.
While coal generation fell, output from other sources rose. Nuclear and hydropower generation recorded an uptick, and renewable energy sources registered a sharp jump. Renewable power generation surged by almost 23% during April and May, based on the most recent figures available.
The slowdown in demand has also had a knock-on effect on electricity markets. Spot power prices have slumped close to pandemic-era lows, according to previous reports, further underlining the broader impact of this seasonal cool-off.
As India’s power planners confront these new variables, the interplay between weather patterns and electricity use is becoming a major area of concern. The shift in consumption behaviour and seasonal variability is testing the resilience and flexibility of the country’s energy ecosystem.
(with Bloomberg inputs)
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