Mild January Drives Electricity Needs to 138 bn Units in India, Power Generation Aligned
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Synopsis
In January 2025, India experienced its third-warmest January in 125 years, which, combined with increased industrial activities, led to a 2.2% rise in electricity demand to 138 billion units. Power generation also rose, keeping up with this demand surge.
Key Takeaways
- Electricity demand rose by 2.2% to 138 billion units in January 2025.
- Peak power demand increased to 237 GW, up by 14 GW year-on-year.
- Power generation surpassed demand with a 3.9% increase.
- Real-time market volume surged by 27% year-on-year.
- Industrial activity continues to drive power demand.
New Delhi, Feb 11 (NationPress) The third-warmest January recorded in 125 years, along with heightened industrial operations, propelled electricity demand up by 2.2 percent (year-on-year) to 138 billion units (BU) in January 2025, as per a report released on Tuesday.
In this month, the peak power demand is projected to have climbed by 14 GW year-on-year to reach 237 GW. Meanwhile, power generation is estimated to have increased by 3.9 percent year-on-year to 149 BU in January, exceeding the regular monthly demand.
The real-time market (RTM) volume experienced a significant rise of 27 percent year-on-year, hitting 3,036 million units (MUs), while the day-ahead market (DAM) also saw an 8 percent uptick to 6,015 MU. Overall, RTM volume at the Indian Energy Exchange (IEX) surged by 400 basis points to 26 percent year-on-year in January, according to the report from Crisil Intelligence.
The India Meteorological Department (IMD) noted that the average temperature across India in January was 0.94 degree Celsius above the historical average of 18.04 degree Celsius since 1901.
Typically, heating needs, a vital factor driving power demand, were low this time due to the warmer and drier weather. Although temperatures were generally higher nationwide, the growth in power demand varied regionally, as indicated in the report.
Power generation saw an estimated growth of 3.9 percent year-on-year to 149 BU in January, surpassing the usual monthly demand.
Coal generation rose modestly by 0.8 percent year-on-year, following a high growth base of 10 percent from the previous fiscal year. In contrast, generation from hydro, nuclear, and renewable energy sources increased by 24 percent, 15 percent, and 24 percent year-on-year, respectively.
Furthermore, industrial activity remains robust, as highlighted by the Purchasing Managers’ Index (PMI) score of 57.7 for January, indicating a strong expansion above the benchmark of 50.
Given that nearly half of India's power demand originates from industrial and commercial consumers, the growth of these sectors is vital for sustaining increasing power demand. Between April 2024 and January 2025, power demand is projected to have grown by 4.2 percent year-on-year, as noted in the report.
