Daijiworld Media Network - New Delhi
New Delhi, Apr 10: India witnessed a sharp spike in power demand in March, driven by rising temperatures and robust growth in industrial and commercial activity, according to a report released by Crisil Intelligence on Thursday.
The country recorded an average monthly temperature of 25.5°C—noticeably higher than the 30-year norm of 24.71°C. Several regions in western and eastern central India experienced up to five heatwave days, with parts of Gujarat clocking six. These conditions pushed national power demand up by 6.9%, well above the annual average growth rate of 4.3%. The western region alone saw a 10% jump compared to last year.
The report also indicated a boost in industrial output, with India’s seasonally adjusted Purchasing Managers’ Index (PMI) climbing from 56.3 in February to 58.1 in March—its highest in eight months. This reflects a strong recovery in manufacturing, with the index staying well above its long-term average. As industrial and commercial users contribute nearly 50% of India’s power demand, their expansion continues to play a vital role in energy consumption trends.
The surge in cooling needs pushed peak power demand to 235 GW—an increase of 14 GW over the previous fiscal year. This increase also spilled over into the short-term electricity market. The Real-Time Market (RTM) traded 3,727 million units (MU) in March, up 34% year-on-year. RTM's share of total electricity trading on the Indian Energy Exchange (IEX) rose to 33%, far above its historical average of 24%. Despite this rise in volume, prices held steady, with the market-clearing price at Rs 3.93/unit compared to Rs 3.91/unit last March—thanks to a rise in supply.
Power generation kept pace, rising 8% year-on-year to 161 billion units (BU) in March and 13% over February. All major fuel sources saw growth of over 5%. Coal-based generation rose 6.7% despite already strong performance in March 2024. Coal contributed 75% of the month’s total output, reaffirming its dominance during demand spikes.
Renewable energy (RE) followed with a 15.4% year-on-year rise on top of a strong 11.4% base last year. RE’s share in the energy mix grew to 14% from 12.7% a year ago, reflecting India’s gradual progress toward its COP26 commitments. Hydro and nuclear power generation also saw significant gains, up 33% and 17% respectively, contributing 6% and 3% to the fuel mix.
Coal logistics were also robust. Deliveries to power plants rose 6.25% in March and 6% for the fiscal year, enhancing fuel availability. By the end of March, thermal power stations held 58 million tonnes (MT) of coal—up from 51 MT last year. This improved stockpiles to a 20-day reserve, compared to 18 days in March 2024 and 19 days in February 2025.
Across the full fiscal year 2025, power demand rose by 4.3% to 1,695 BU, following three years of strong growth with a compound annual growth rate (CAGR) of 7.1% from fiscal 2022 to 2024.
Looking ahead, Crisil projects power demand to grow 6.5-7.5% in Q1 (April–June) of fiscal 2026, compared to 11% in the same period last year. The India Meteorological Department has predicted a more than 50% chance of above-normal temperatures through the summer months, suggesting continued high demand for cooling and, by extension, electricity.