Power demand to rise up to 6% in FY27

ANI

New Delhi

Power demand in the country is expected to rise by around 6% in the current financial year, driven by the anticipated impact of El Nino conditions, which are likely to increase temperatures and reduce rainfall, according to a report by Crisil Intelligence.

The report stated that power demand is estimated to grow 5.5-6.5% year-on-year in fiscal 2027 to reach 1,815-1,825 billion units (BU). The expected emergence of El Nino in July is likely to push up cooling demand due to higher temperatures and lower rainfall. In addition, steady economic growth and a low base are expected to support the rise in power consumption.

"Power demand is estimated to rise 5.5-6.5% year-on-year in fiscal 2027 to 1,815-1,825 BU, because of the expected emergence of El Nino in July," the report stated. 

The report also highlighted recent trends, noting that power demand in March rose to approximately 149 BU, surpassing the 147 BU recorded in the same month last year. This marks the highest March consumption since at least 2010.

Activity in the short-term power market reflected this trend. The real-time electricity market volume in March surged 41.7% y-o-y to 5,283 million units (MU).