Warm January lifts electricity demand to 138 bn units in India, power generation in sync
The third-warmest January in 125 years and industrial activity lifted demand for electricity 2.2 per cent (year-on-year) to 138 billion units (BU) in the first month of 2025
- NEW DELHI — The third-warmest January in 125 years and industrial activity
lifted demand for electricity 2.2 per cent (year-on-year) to 138 billion units
(BU) in the first month of 2025, according to a report on Tuesday.
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- In January, peak power demand is estimated to have risen
14 GW on-year to 237 GW. On the other hand, power generation rose an estimated
3.9 per cent on-year to 149 BU in January, surpassing typical monthly demand.
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- Real-time market (RTM) volume surged 27 per cent on-year
to 3,036 million units (MUs), while the day-ahead market (DAM) spiked 8 per
cent to 6,015 MU. Overall RTM volume at the Indian Energy Exchange (IEX) rose
400 basis points to 26 per cent on-year in January, according to the report by
Crisil Intelligence.
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- The India Meteorological Department (IMD) said the
all-India mean temperature in January was 0.94 degree Celsius higher than the
average of 18.04 degree Celsius seen since 1901.
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- Typical heating requirements, a key driver of power
demand, was subdued this time because of warmer and drier weather conditions.
While temperatures have been warmer across the nation, growth in power demand
has not been uniform on a regional level, the report mentioned.
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- Power generation rose an estimated 3.9 per cent on-year
to 149 BU in January, surpassing typical monthly demand.
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- Coal generation inched up 0.8 per cent on-year on a high
base of 10 per cent on-year growth last fiscal. Generation of hydro, nuclear
and renewable energy rose 24 per cent, 15 per cent and 24 per cent on-year,
respectively.
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- Additionally, manufacturing activity continues well, as
underscored by the Purchasing Managers’ Index (PMI) reading 57.7 for January,
well above the mark of 50 that underscores expansion.
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- With nearly half of India’s power demand coming from
industrial and commercial consumers, expansion of relevant activities is
crucial for power demand to continue growing. Between April 2024 and January
2025, power demand is estimated to have increased 4.2 per cent on-year, the
report noted.
