Archive · 25 Nov 2025
India's Power Demand Growth Slows to 2% in FY26
India's electricity demand is expected to grow by only 1.5–2% in the next financial year, which is less than what was predicted earlier.
This is because the monsoon came early and lasted longer, and because last year's demand was already high.
The good news is that India has been adding a lot of new power capacity, especially from renewable sources like solar and wind energy.
This is because developers wanted to finish their projects before a special benefit ended.
The amount of coal stored at power plants has also increased, which helps ensure that there's enough fuel to generate electricity.
The price of electricity in the market has gone up a bit but is still lower than last year.
The demand for electricity has been lower than usual this year because of the early and prolonged monsoon rains, which cooled temperatures and reduced the need for energy.
This has led to a drop in the prices of electricity in the market.
India's electricity demand growth forecast for FY26 revised down to 1.5–2% from 4–4.5% due to early and prolonged monsoon and high base effect.
Coal inventories at power plants increased to 16.6 days as of November 10, 2025.
Average spot power tariffs on the Indian Energy Exchange (IEX) stood at ₹3.1 per unit as of November 10, 2025, up from ₹2.7 per unit in October but lower than November 2024 levels.
India's electricity demand fell by 3% Y-o-Y in the first 10 days of November 2025, and energy consumption fell by 6% Y-o-Y to 132 billion units in October 2025.
Market Clearing Price in the Day Ahead Market (DAM) fell 32% Y-o-Y to ₹2.67 per unit in October 2025, and Real Time Market (RTM) prices fell by almost 28% Y-o-Y to ₹2.73.
- Who
- ICRA, Power System Operation Corporation (POSOCO)
- What
- India's electricity demand growth forecast revised downwards
- When
- FY26, with data from November 2025
- Where
- India
- Why
- Due to early monsoon, high base effect, and increased renewable energy capacity
- Power demand growth
- 1.5–2% in FY26
- Previous estimate
- 4–4.5%
- Coal inventories
- 16.6 days as of November 10
- Average spot power tariffs
- ₹3.1 per unit as of November 10, 2025
- Electricity demand in November 2025
- Fell by 3% Y-o-Y
- Energy consumption in October 2025
- Fell by 6% Y-o-Y to 132 billion units
- Market Clearing Price in DAM (Q2 FY26)
- ₹3.93 per unit
- RTM price (Q2 FY26)
- ₹3.51