India’s power demand in the first quarter of the financial year 2025-26 declined almost 1.5% from the same period last year due to lower temperatures and heavy monsoons compared to last year.
According to the data from the Central Electricity Authority, the country’s energy requirement declined to 445.8 billion units during Apr-Jun 2025 against 452.4 billion units during Apr-Jun 2024.
The decline is the first since 2020 when the pandemic had hit the country’s economy and slowed down the power demand to 293.2 billion units, as per the analysis of the data.
As per the latest data, the peak demand for power during the quarter under review touched 243 gigawatt (GW). The government has estimated the peak demand to touch 270 GW during this year’s summer season. Last year, the peak power demand touched 250 GW.
READ: Annual Increment Cannot Be Denied to Retiring Government Employees: Patna HC
As a result, the country’s cumulative power generation declined by 5.5% on-year during the first quarter. Power generation from the country’s thermal sources declined by 8% during the quarter compared to last year, while that from nuclear power sources increased by 11%. Hydropower generation also registered a growth of 13% on year.
Following the decline in demand, electricity prices in the spot market also fell by as much as 20% during the first quarter of the current financial year 2025-26 as widespread rains kept temperatures lower, data from the Indian Energy Exchange showed.
The market clearing price in the Day-Ahead Market stood at Rs 4.41/unit during Q1FY26, registering a decline of 16% compared to Q1FY25. Similarly, the market clearing price in the Real-Time Market declined by 20% at Rs 3.91/unit during Q1FY26 compared to Q1FY25.
Notably, during the quarter, on May 25, 2025, heavy rains pushed RTM prices down to Rs 1.53/unit, with near-zero prices during several time blocks, as per IEX data.
READ: Prime Minister Modi retains key ministers, inducts new faces in revamped cabinet
In June alone, the market clearing price in the Day Ahead Market stood at Rs 3.90/unit, down 28% year-on-year. Similarly, the market clearing price in the Real Time Market touched Rs 3.73/unit during June, down 26% year-on-year.
The reduction in prices helped Discoms and Commercial & Industrial consumers to meet their demand at a competitive price and to replace their costlier power by procuring through exchanges.
While the demand has cooled down, the coal stocks at the country’s domestic and imported coal-based thermal power plants has piled up at 60.5 million tonnes as of July 7 which is 99% of the normative stock requirement of 60.9 million tonnes.
READ: Income Tax department raids a prominent builder in Mumbai
