Daijiworld Media Network - New Delhi

New Delhi, Aug 12: India’s electricity demand rose by 2.4% year-on-year in July, reaching 154 billion units (BU), up from 150 BU in July last year, according to a report by Crisil Intelligence released on Monday. This marks a sharp reversal from the demand dip seen in May and June, which saw a YoY decline of 4.8% and 2.3%, respectively.

Cooling Prices Signal Adequate Supply

The average market clearing price (MCP) in the real-time market (RTM) dropped by 23% YoY to Rs 3.83/unit, suggesting that supply remained robust amid moderate demand. The gap between RTM and day-ahead market (DAM) volumes also narrowed to 401 million units (MU) in July — far lower than the average 2,529 MU between June 2020 and July 2025.

Clean Energy Share Grows

A surge in rainfall powered a 36% YoY increase in hydropower generation, while renewable energy output rose by 7.2%. In contrast, thermal power generation declined, causing coal’s share in India’s power mix to dip to 63% (from 66% a year ago).

Despite the decline, coal remained the mainstay of energy supply, showcasing its flexibility in responding to demand fluctuations. As of July 31, thermal power plants held 54 million tonnes (MT) of coal, enough for 18 days — slightly lower than 21 days of inventory recorded in May and June.

Outlook for FY25

Crisil projects a 2.5–3.5% YoY growth in power demand for FY25, reaching around 1,745 BU, which reflects a cooling from 4.2% growth in the previous fiscal year. The India Meteorological Department (IMD) has forecast another favourable southwest monsoon, which is expected to ease ambient temperatures and suppress peak electricity usage in the coming months.