Renewable Energy Generation Rises To 19 percent In May Amid Falling Demand From Heavy Rainfall: HSBC Report

New Delhi, Jun 14 (KNN) A recent HSBC report highlights a significant shift in India’s energy landscape, driven by a dip in power demand and a steady increase in renewable capacity. 

The share of renewable energy in total power generation rose to 17 percent in May 2025 and further to 19 percent in the first 10 days of June, up from 13 percent and 14 percent during the same periods last year, respectively.

The report attributes the decline in power demand to a high base and excessive rainfall. 

In May, overall power demand and peak demand fell by 4 percent and 7 percent, respectively. 

During the first 10 days of June, both metrics declined by 1 percent. May witnessed significantly above-average rainfall, which contributed to the lower consumption.

Due to the “must-run” status of renewable energy sources, thermal power plants were required to scale down generation. 

Consequently, the average Plant Load Factor (PLF) of thermal units dropped to 65 percent in May, down from 72 percent in the same month last year. 

This led to an increase in coal stockpiles at power stations, which reached 61 million tonnes—sufficient for 21 days of demand, compared to 17 days a year ago.

The surplus also pushed power prices during solar hours to zero on May 25, while power deficits remained negligible throughout the month.

In response to the growing share of renewables and the associated challenge of intermittency, the Indian government is expanding its support for battery storage solutions. 

A new tranche of Rs 54 billion in viability gap funding (VGF) has been announced to support 30 GWh of battery storage capacity. This translates to a government subsidy of around USD 21 per kWh for new battery systems.

Of the proposed 30 GWh, 25 GWh will be allocated to state-level projects, and the remaining 5 GWh will be assigned to NTPC. 

This comes in addition to the previously announced Rs 37 billion in VGF, under which 13 GWh of storage is currently under implementation.

(KNN Bureau)