In June 2024, North India's power demand surged by 22 per cent compared to the previous year due to an extended heatwave, as reported by CRISIL Market Intelligence & Analytics (MI&A). The heatwave caused temperatures to rise 5-8?C above normal, leading to increased usage of cooling appliances and higher power consumption.

Other regions in India also experienced a rise in power consumption: the northeastern region saw an 8.3 per cent increase, the eastern region 7.8 per cent, and the western region 3.5 per cent. However, power demand in the southern states decreased by 5.1 per cent. Despite the early arrival of the southwest monsoon, 38 per cent of districts in India faced deficient rainfall between June 1 and July 4, which worsened the power demand situation. The northern region was particularly affected, with half of its 209 districts reporting deficient rainfall.

The report noted that Real-Time Market (RTM) volumes on the Indian Energy Exchange (IEX) in the northern region increased by 181 per cent in June. This significant demand spike was met with only an 8 per cent price increase, thanks to higher supplies from coal and gas plants. Nationally, power demand grew by 8 per cent year-on-year to 152 billion units (BU) in June, following a 14 per cent growth in May. Economic activity contributed to this rise, with the Purchasing Managers Index (PMI) increasing to 58.3 in June from 57.5 in May. Peak power consumption in June reached 245.41 GW, following a record high of 250 GW in May.

The report also highlighted a booming short-term power market, with RTM volumes rising by 20 per cent year-on-year in June. This increase indicates the growing need for immediate power delivery during sudden high demand periods. RTM volume share on the IEX climbed to 30 per cent in June, up from an average of 23 per cent since its inception in June 2020.