India's January power demand hits 16-year high at 143 billion units

India’s power demand rose 4.5 per cent year-on-year (Y-o-Y) to 143 billion units (BUs) in January, marking the highest consumption for the month since 2010, primarily on the back of severe cold wave conditions across northern and eastern regions of the country.

 

Peak power demand in January touched 245 gigawatt (Gw), surpassing the previous summer peak of 243 Gw recorded in June last year. This surge was largely attributed to higher heating demand during the peak of North India’s cold wave on January 9, ratings agency Crisil said in a report.

 

The report also attributed the rise in power demand to sustained manufacturing activity. Although growth moderated slightly, the Manufacturing Purchasing Managers’ Index (PMI) increased to 55.4 in January from 55.0 in December.

 

Overall, power demand is expected to grow 1.5 per cent Y-o-Y to 1,730 BUs in 2025-26, driven by a harsh winter and steady economic growth, but partially offset by a prolonged monsoon.

 

The real-time market (RTM) volume increased 52.8 per cent to 4,638 million units (MUs) in January and the average market clearing price (MCP) in the RTM segment declined 16 per cent to ₹3.72 per unit in the same period. The MCP in the day-ahead market (DAM) also declined 13 per cent Y-o-Y to ₹3.86 per unit.

 

“The declining prices provided an opportunity for distribution companies (discoms) and commercial and industrial consumers to meet their demand at competitive prices and replace costlier power by procuring through exchanges,” the report said.

 

Power generation also witnessed a similar jump, rising 6 per cent to 156 BUs in January. Generation from all fuel sources saw a rise during the month, according to the report. Renewable energy generation increased by 10 per cent, driven by capacity additions of 39.65 Gw during FY26 (April-January).

 

Coal-based generation increased nearly 5 per cent, with its share in total generation climbing to 74 per cent, compared with the FY26 average of 68 per cent. This highlights coal’s role in providing flexibility to ramp generation up or down in accordance with demand. Hydro and nuclear power generation also increased by 11.8 per cent and 5.3 per cent, respectively.