India's electricity demand falls for first time since Covid-19 pandemic

Cooler weather reduced air conditioning use, while coal power output dropped 7%. Renewable energy generation increased by nearly 23% during the period.

India’s electricity demand in the quarter through June declined almost 1.5% from a year earlier, following a cooler summer that reduced the use of energy-intensive air conditioners.

The country hasn’t seen the peak electricity demand increase this year, which usually happens in June. (Unsplash/representational)

Demand fell to 445.8 billion kilowatt hours in the period, according to data from the government’s Central Electricity Authority. That’s the first contraction since 2020, when the pandemic brought the economy to a halt, according to Bloomberg News calculations.

The influence of a changing climate on energy demand is starting to worry government and industries alike, challenging their ability to assess future consumption patterns and plan investments.

Coal-fired plants, which typically account for nearly three-quarters of the country’s power output, were the worst hit by this year’s muted demand. While generation from other sources, such as hydropower and nuclear rose during the period, coal power output fell 7%. Plants operated at an average 69.6% of capacity, compared to 76.6% a year earlier. Renewable generation surged almost 23% during April-May, according to the latest data available.

India’s electricity demand usually peaks during the months through June, as more air conditioners are switched on. The country hasn’t seen the peak demand increase this year and if it remains below last year’s 250 gigawatts, it would be the first drop in at least two decades.