Power demand sees uptick as temperature rises

New Delhi: Power demand across the country has remained elevated in the past few weeks, with peak demand recorded above the 220-GW-mark in March, as temperatures across the northern region have been increasing with the end of the winter.

On 7 March, peak demand touched 233 GW. According to latest data from the Grid Controller of India, peak demand on 9 March was 223 GW. About a year ago, on 11 March 2024, peak power demand was 217.99 GW.

The increase in demand comes amid warmer weather as people have resumed using cooling appliances to some extent, more so in commercial establishments and offices.

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"Compared to March last year, the demand has been higher this time. Also, the winter demand was not as low as expected due to warmer-than-usual winters. The demand is expected to grow in the fourth quarter (March-April) with onset of summer season driving higher demand for cooling and higher commercial and industrial power consumption as businesses tend to fulfill orders before the financial year ends," said Vikram V., vice president and co-group head - Corporate Ratings, ICRA Ltd.

Vikram added that in the current financial year (FY25), power demand is projected to grow around 4.5% and the next fiscal (FY26), it is likely to grow by 6% on a year-on-year basis.

The peak demand this year is likely to hit 270 GW, according to the Central Electricity Authority (CEA). Last year it hit a record level of 250 GW on May 31.

Rohit Bajaj, joint managing director, Indian Energy Exchange said, “India has been experiencing warmer weather this year, and the trend has continued into March. As a result, the country’s energy consumption during 1–10 March 2025, marked a 10% increase compared to the same period last year. Similarly, peak power demand has also risen. On March 10, 2025, peak demand reached 234 GW, surpassing the maximum peak demand of 222 GW recorded in March 2024. During this period (01 to 10 March 2025), the Market Clearing Price in the Day Ahead Market (DAM) stood at ₹4.57/unit, compared to ₹3.91/unit in March 2024.”

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Preparing for high demand

Amid projections of high demand, the power ministry on 28 February extended the mandate for imported coal-based power plants to run at full capacity till June. In line with the preparations to meet the high power demand, coal companies are making efforts to stock up required quantity of coal. The cumulative stock at power plants across the country stood at 55.83 million tonnes, adequate for about 18 days of power supply.

Last fiscal, the stock of domestic coal by the end of March stood at 47 million tonnes.

The rise in stocks comes amid steps by the government, coal producers and power generators to ensure uninterrupted availability of power following a crisis-like situation in FY22, when stocks of domestic coal were not adequate to meet the post-Covid pent-up power demand and power plants were reluctant to purchase imported coal at high prices.

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The parliament's standing committee on coal, mines and steel a few months back also noted that in FY22 the coal stock at thermal power plants fell to a low of 7.2 million tonnes, enough for only four days of coal requirements.

In its latest report submitted to Parliament in December, the panel also noted that the stocks improved to 30.54 million tonnes in 2023-24, adequate for meeting 13 days of operations.