MUMBAI: Electricity demand rose 4.5% on-year to reach a 16-year high of 143 billion units in January, marking the highest consumption for the month since 2010, primarily on the back of severe cold wave conditions across northern and eastern regions of the country.
Peak power demand in January touched 245 gw, surpassing the previous summer peak of 243 Gw recorded in June last year, Crisil said in a report Wednesday.
This surge was largely attributed to higher heating demand during the peak cold wave on January 9 in the North, coupled with the rise in power demand to sustained manufacturing activity, the report said.
Overall, power demand is expected to grow 1.5% on-year to 1,730 BUs in fiscal 2026, driven by a harsh winter and steady economic growth, but partially offset by a prolonged monsoon.
The real-time market (RTM) volume increased 52.8% to 4,638 million units (MUs) in January and the average market clearing price (MCP) in the RTM segment declined 16% to Rs 3.72 per unit in the same period. The MCP in the day-ahead market (DAM) also declined 13% to Rs 3.86 per unit.
“The declining prices provided an opportunity for distribution companies and commercial and industrial consumers to meet their demand at competitive prices and replace costlier power by procuring through exchanges,” the report said, adding power generation also witnessed a similar jump, rising 6% to 156 BUs in January.
Generation from all fuel sources saw a rise during the month, with the renewable energy generation increasing by 10%, driven by capacity additions of 39.65 gw so far this fiscal.
Coal-based generation increased nearly 5%, with its share in total generation climbing to 74%, compared to the FY26 average of 68%, highlighting the role of coal in providing flexibility to ramp generation up or down in accordance with demand.
Hydro and nuclear power generation also increased by 11.8% and 5.3%, respectively, the report said.