India’s power demand was supposed to ease by this time of the year. Why hasn’t that happened?

India's electricity demand has unexpectedly remained high through September, with peak power demand nearing its summer peak. On September 10, the country experienced its highest ever peak demand at 269 gigawatts, surpassing the annual record of 270 GW set in May. Typically, electricity demand begins to ease in September as the summer heat subsides, but this year, consumption has remained elevated, keeping peak demand near its summer level.

This unusual demand spike is attributed to a combination of factors, including persistent heat, deficient rainfall, higher irrigation demand, and El Niño-related weather conditions. According to power sector experts, the surge in demand is driven by higher cooling and irrigation needs, resulting from deficient monsoon rains. A 15% rainfall deficit, combined with above-normal temperatures, has led to a 20.7% increase in electricity consumption compared to the same period last year.

The situation puts pressure on the power system, as hydropower generation has declined due to deficient rains, increasing reliance on thermal generation and gas-based power plants. This shift has tightened the supply-demand balance, raising electricity prices in the market.