Power Demand Hits 149 BUs In March 2026; Growth Rate Eases To 1.7% YoY: Crisil

New Delhi, Apr 13 (KNN) India’s power demand reached about 149 billion units (BUs) in March 2026, the highest for the month in over a decade, marginally exceeding last year’s 147 BUs. However, the growth rate remained subdued at 1.7 per cent year-on-year (YoY), according to a report.

The Crisil Intelligence report said the slower growth was mainly due to above-normal rainfall—around 10 per cent higher than usual—which reduced cooling requirements. A high base effect from last year’s strong growth and moderation in manufacturing activity also contributed to the softer demand.

Peak Demand and Industrial Activity Weaken

Peak power demand during March stood at 238 GW, about 3 per cent lower than the peak recorded earlier in the fiscal, the report noted.

At the same time, the manufacturing Purchasing Managers’ Index (PMI) declined, indicating slower industrial expansion. Since industrial and commercial users account for nearly half of electricity consumption, this had a direct impact on demand growth.

Short-Term Power Prices Ease

The report highlighted, moderate demand conditions led to a decline in electricity prices in the short-term market.

While trading volumes increased significantly in the real-time market, average prices fell around 10 per cent year-on-year. Prices in both solar and non-solar hours declined, reflecting sufficient power availability.

Similarly, prices in the day-ahead market also eased, indicating a well-supplied system during the month.

Generation Sees Limited Increase

Power generation rose modestly by about 1.8 per cent year-on-year to 163 BUs in March.

Renewable energy generation continued to grow, supported by capacity additions during the year. Coal-based generation remained dominant, accounting for the majority share, while hydro and nuclear power also recorded increases.

Coal stocks at thermal power plants remained stable, providing adequate buffer levels.

Outlook: Weather to Drive Future Demand

Power demand is expected to pick up in fiscal 2027, with growth projected at 5.5–6.5 per cent.

The anticipated impact of El Niño conditions, which may lead to higher temperatures and lower rainfall, is likely to increase cooling demand. Along with steady economic activity and a favourable base, this is expected to support stronger growth in electricity consumption going forward, the report said.

(KNN Bureau)