Archive · 25 Nov 2025

India's Power Demand Growth Slows to 2% in FY26

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.

Sources