India’s Power Demand Climbs 2.4% in July Amid Rising Renewables and Falling Coal Share: CRISIL – EQ
In Short : India’s power demand rose 2.4% in July to 154 billion units, driven by strong industrial activity, Crisil reported. Hydropower generation surged 36% due to heavy rainfall, while renewables grew 7.2%. Coal’s share in power generation fell to 63%. The average market price dropped 23% to ₹3.83/unit. Crisil projects 2.5–3.5% power demand growth in FY26.
In Detail : India’s power demand increased by 2.4% in July compared to the same month last year, reaching 154 billion units, according to Crisil Intelligence. This growth was largely driven by strong industrial activity, signaling a rebound in economic momentum.
Hydropower generation saw a significant surge of 36%, thanks to abundant rainfall during the month. This increase helped balance the power mix and provided cleaner energy to the grid.
Renewable energy sources, including solar and wind, also grew by 7.2%, reflecting ongoing investments and policy support for clean energy expansion across the country.
Conversely, thermal power generation, mainly coal-based, experienced a decline. Coal’s share in the overall generation mix dropped from 66% a year ago to 63% in July 2025.
The average real-time market price for electricity fell by 23%, settling at ₹3.83 per unit. This decline indicates an ample power supply and improved efficiency in the electricity market.
Coal inventories at thermal power plants stood at 18 days’ worth of stock in July, slightly lower than the 21-day average in previous months. This reflects steady coal consumption aligned with demand.
Looking ahead, Crisil projects power demand growth in the fiscal year 2025–26 to moderate to around 2.5% to 3.5%, a slight slowdown compared to previous years.
This moderation is attributed to structural changes in the economy and increased energy efficiency measures, which may temper future demand growth while supporting sustainability goals.
India’s evolving power sector landscape highlights the ongoing transition toward cleaner energy sources and balanced resource management, ensuring reliability and affordability for consumers nationwide.
