Energy demand within the first half of Might remained subdued as thunderstorms and rain tempered temperatures in India, with peak demand reaching 231 gigawatts (GW) between Might 1 and 17—barely under the 233 GW recorded in the identical interval final yr.
Forecasts of continued gentle rain and winds via Might are anticipated to ease strain on grid managers, who had anticipated vital shortages amid document demand.
India consumed 82.1 billion items (BU) of electrical energy between Might 1 and 17, barely under the 83.8 BU recorded throughout the identical interval final yr, in keeping with knowledge from the Nationwide Load Despatch Centre (NLDC).
Peak demand this yr was 231 GW on Might 15, whereas the bottom—202 GW—was met on Might 7. Compared, peak demand final yr touched 233 GW on Might 6, with the bottom at 207 GW on Might 12. Final yr’s peak demand of 250 GW was recorded on Might 31.
The subdued demand follows a modest 2.3 per cent year-on-year development in April, attributed to a excessive base impact, in keeping with ICRA.
In January, the NLDC had flagged Might and June as “high-risk months” for energy shortages, warning that unmet electrical energy demand may attain 15-20 GW, significantly throughout non-solar hours. Nevertheless, rains and thunderstorms have saved temperatures low, which in flip has eased air-conditioner use and helped maintain the facility provide scenario manageable to date.
“In Might, we’ve been fairly comfy when it comes to energy availability and costs. The typical market value for the primary 13–14 days has been round Rs 4.40 per unit,” Rohit Bajaj, joint managing director on the Indian Power Alternate (IEX), stated.
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“Actually, we’ve even seen costs dip to Rs 3 on some days, particularly after sudden rains. On Might 4, as an example, the worth dropped to Rs 3.11. There have been a number of days when costs stayed under Rs 4,” Bajaj added.
With low demand, the grid can be relying much less on thermal-based capacities in comparison with final yr. The share of electrical energy generated from coal has been round 71 per cent in Might to date, in comparison with 74 per cent final yr. Consequently, the share of wind and photo voltaic has elevated from round 10 to 14 per cent.
“Inexperienced vitality is certainly rising. We’ve seen robust participation, and on a year-on-year foundation, volumes have practically doubled. A big quantity of solar energy is coming in in the course of the daytime,” Bajaj stated.
In comparison with a modest 4.2 per cent development in energy demand in 2024-25—attributed to an unfavorable base and a slowdown in financial exercise—ICRA expects demand to rise by 5.5–6 per cent in 2025-26. Nevertheless, a positive monsoon may mood this development. Peak demand for 2025-26 is projected to achieve 270 GW.