Power demand in India declines for 1st time in 15 months, hydro gains steam

New Delhi

In August, India's peak power demand dropped to 217 GW from 238 GW a year earlier, according to a report released on Tuesday. Electricity demand decreased by 5.3% year-on-year to 144 billion units, despite receiving 7% more rainfall than average. This decline follows a 6.7% rise in demand recorded in July.

Power generation also fell by 3% to 155 billion units. Production of coal and renewable energy decreased by 3% and 13%, respectively, while hydropower generation increased by 7.6% due to ample rainfall.

Demand reductions were noted in the western and northern regions, with decreases of 10% and 6%, respectively. The average market price for electricity dropped 45% to Rs 3.3 per unit. Water levels in reservoirs rose 1% compared to the previous year.

The report predicts a 6.5-7.5% increase in power demand for fiscal year 2025 due to weather variations and past rainfall patterns.