Statsguru: Rising summer temperatures push power demand in India

Weather advisories have warned of severe heatwave conditions across most of northern India. Rising summer temperatures have pushed power demand, with numbers rising closer to the power ministry’s projected peak of 260 gigawatts (Gw) this summer. 

Increased use of cooling equipment during heatwaves is said to be a key reason, although only around a quarter of households own air conditioners or air coolers in India. This is expected to multiply in the coming years and decades (chart 1).



Eastern India and North India have seen among the largest increases in peak power demand (chart 2). 


 

Much of the rising demand is met by thermal power. It accounted for more than three quarters of the electricity generated as of March 2024, similar to previous years. Reports indicate adequate coal stocks to meet demand unlike in 2023. India added over 12,000 megawatts (Mw) of installed thermal capacity since March 2020. However, major power capacity additions are in the renewable segment where the addition has been nearly 57,000 Mw (chart 3,4).




 

The intermittent nature of renewable energy can affect grid stability. Nuclear power is a clean alternative to the steady power generation, currently provided by thermal power plants. India has been pushing to add more nuclear power, but the output remains low.
 

The incremental investment in thermal power has largely come from government sources. Private sector additions have been flat since 2020 (chart 5).



The private sector has been investing more in renewable energy. Both central and state government capacity additions have been minimal in the segment (chart 6).       

     
 

This has led to a situation where the difference between power demand and supply is becoming challenging to meet at night. Renewable sources like solar energy are unavailable at night and there are limited avenues for energy storage.