Power demand dips in November as temperatures fall; coal output declines

India's power demand dipped 0.3% to 123 BUs in November amid lower temperatures, even as peak demand hit a record 216 GW, with RE and hydro generation rising and coal output falling

Lower temperatures cooled power demand by an estimated 0.3 per cent to 123 billion units (BUs) in November compared with 124 BUs a year ago. This comes after a nearly 6 per cent drop in demand growth in October, according to a new report.

 

Which states saw the steepest decline in power demand?

 

“Among others, Madhya Pradesh logged an 11 per cent decline in demand due to severe cold wave conditions, while Rajasthan saw demand dip 7 per cent due to cold weather,” the report, published by CRISIL Intelligence today, said.

 

How did the industrial and manufacturing segments perform?

   

Commercial and industrial (C&I) consumers account for around 50 per cent of India’s power demand, and manufacturing expanded at a slow pace in November. The Manufacturing Purchasing Managers’ Index was at 56.6, down from October’s 59.2, the weakest improvement in operating conditions since February.

 

What happened to peak power demand and demand for the fiscal year so far?

 

Interestingly, November 2025 recorded a peak power demand of 216 GW, the highest since fiscal 2016. For the April-November period, power demand is estimated to have declined 0.1 per cent on-year.

 

How did the short-term power market behave?

 

Activity in the short-term power market reflected the broader power demand performance. In the real-time market (RTM), the average market clearing price (MCP) declined 9 per cent on-year to Rs 3.13 per unit in November, indicating ample availability amid tepid electricity requirements.

 

How did power generation trends vary across sources?

 

“Tracking the power demand, generation increased a marginal 0.5 per cent on-year to 134 BUs in November. Renewable energy (RE)-based generation is estimated to have increased 17 per cent on-year, rising for the eighth time this fiscal. This generation growth can be attributed to rising capacity additions,” the report said.

 

Hydropower has also grown every month this fiscal, with a 27.6 per cent on-year growth rate in November. This comes on the back of an above-normal and extended southwest monsoon. Conversely, coal-based power generation declined for a second time this quarter.

 

How sharply did coal generation fall?

 

Coal generation is estimated to have declined 3.5 per cent on-year in November after shrinking 14 per cent on-year in October. Coal accounted for 72 per cent of the total power output compared with 75 per cent a year ago.