Power Demand Rises 2.4 per cent in July to 154 BUs
POWER & RENEWABLE ENERGY

Power Demand Rises 2.4 per cent in July to 154 BUs

India’s electricity demand grew 2.4 per cent year-on-year in July to 154 billion units (BUs), up from 150 BUs a year earlier, driven by buoyant industrial activity, according to a CRISIL report. This marked a turnaround from May and June, which saw on-year declines of 4.8 per cent and 2.3 per cent respectively.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) – a key indicator of industrial activity – rose to a 16-month high of 59.1 in July, from 58.4 in June.
Demand in the southern region jumped 11.4 per cent on-year, in line with a 1 per cent rainfall deficit in the South Peninsular Region, as per the India Meteorological Department (IMD). In contrast, northern region demand fell 5 per cent, compared with a 17 per cent rise in July 2024.
Peak power demand in July was over 10 per cent lower than the highest peak recorded in June, a trend also observed in fiscals 2023 and 2024.
Coal-based generation fell 2.2 per cent on-year, marking the fourth consecutive monthly decline this fiscal, compared with an 8 per cent increase in fiscal 2024. However, higher rainfall boosted hydro power output by about 36 per cent on-year, while renewable generation rose 7.2 per cent. Consequently, coal’s share in the total power mix dropped to 63 per cent from 66 per cent a year earlier, underlining its flexibility to be ramped up or down in line with demand shifts.

India’s electricity demand grew 2.4 per cent year-on-year in July to 154 billion units (BUs), up from 150 BUs a year earlier, driven by buoyant industrial activity, according to a CRISIL report. This marked a turnaround from May and June, which saw on-year declines of 4.8 per cent and 2.3 per cent respectively.The HSBC India Manufacturing Purchasing Managers’ Index (PMI) – a key indicator of industrial activity – rose to a 16-month high of 59.1 in July, from 58.4 in June.Demand in the southern region jumped 11.4 per cent on-year, in line with a 1 per cent rainfall deficit in the South Peninsular Region, as per the India Meteorological Department (IMD). In contrast, northern region demand fell 5 per cent, compared with a 17 per cent rise in July 2024.Peak power demand in July was over 10 per cent lower than the highest peak recorded in June, a trend also observed in fiscals 2023 and 2024.Coal-based generation fell 2.2 per cent on-year, marking the fourth consecutive monthly decline this fiscal, compared with an 8 per cent increase in fiscal 2024. However, higher rainfall boosted hydro power output by about 36 per cent on-year, while renewable generation rose 7.2 per cent. Consequently, coal’s share in the total power mix dropped to 63 per cent from 66 per cent a year earlier, underlining its flexibility to be ramped up or down in line with demand shifts.

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