India Powers Through March: Heatwaves and Industrial Growth Drive Energy Demand Surge

India saw a steep 6.9% year-on-year rise in power demand during March 2025, driven by increasing temperatures and strong industrial growth. The increase was much higher than the average annual growth of 4.3%, indicating the combined effect of heatwaves and increased manufacturing activity. The average monthly temperature was above historical levels, with western India seeing several heatwave days, further boosting cooling demand.

The peak power demand went up to 235 GW in the month, 14 GW higher than in the last financial year, with industrial and commercial sectors contributing close to half of the total energy consumption. The manufacturing sector showed impressive growth, with the Purchasing Managers' Index (PMI) at an eight-month high of 58.1, reflecting ongoing economic momentum.

On the supply side, power generation increased by 8% year-on-year to 161 billion units (BU), led mainly by coal-based production, which accounted for 75% of the total output. Renewable energy also increased significantly, accounting for 14% of the energy mix, reflecting India's focus on cleaner energy objectives.

Looking to the future, power experts project increased power demand over the summer season as above-average temperatures have been forecast across large parts of India. Mechanizations are underway to strengthen coal stockpiles and provide steady supply of electricity.

Source: Financial Express