New Delhi: India’s power demand grew by 4.3% year-on-year to approximately 125 billion units (BUs) in November 2024, fueled by a resurgence in industrial activity, according to Crisil Market Intelligence & Analytics. Industrial and commercial consumers, who account for nearly half of the country’s total power consumption, played a significant role in the growth.
The Purchasing Managers’ Index (PMI) for November stood at 56.5, signaling expansion and supporting the recovery in demand. Peak power demand also rose marginally to 207 GW during the month, compared to 204 GW a year ago.
“Power demand is expected to track economic growth this fiscal, with GDP projected to expand by 6.8% year-on-year,” the report stated.
Regionally, northern states led the growth with a 9% rise in power demand, while the western, southern, and eastern regions recorded growth rates of approximately 1%, 2%, and 2%, respectively.
In the short-term power market, the real-time market (RTM) volumes surged 28% year-on-year to 3,019 million units (MUs) in November, while the day-ahead market (DAM) saw a 9.8% rise to 5,651 MUs. RTM’s share in the total Indian Energy Exchange (IEX) volume increased to 31% from 26% in November 2023.
On the generation side, India produced an estimated 136 BUs of electricity in November, marking a 5.4% year-on-year increase. Coal-based generation, which had declined over the previous three months, rose by 3.5% during the month. Renewable energy (RE), hydro, and nuclear power generation also increased by 4%, 43%, and 8%, respectively, with higher hydro generation benefiting from a favorable base effect.
Coal stocks at thermal power plants improved to 40 million tonnes as of November 30, 2024, compared to 27 million tonnes a year earlier, supported by a 7.4% year-on-year increase in coal production post-monsoon.
Crisil projected power demand for the full fiscal to rise by 5-6%, buoyed by strong economic activity and weather-related factors, including prolonged heatwaves in the first quarter. However, a moderate winter season is likely to temper demand growth in the coming months.