India’s peak power demand hit a record 240 gigawatts (GW) on Friday as the blistering summer coupled with intense heat waves pushed the mercury further north.

According to the National Load Despatch Centre (NLDC) data, India’s peak power demand met on May 24 stood at 239.96 GW, almost equalling the 2023 record. Peak demand met during evening hours was 220.58 GW.

The world’s third largest energy consumer recorded an all-time high peak demand met of 240 GW in September 2023. The Power Ministry had projected a peak demand of 235 GW for May (Day), but scorching summers and intense heat waves across north and central India pushed the consumption higher.

Since May 11, the country’s peak power demand has averaged at almost 226 GW. In fact, since May 21, peak demand has hovered at more than 230 GW.

The rise in demand is in line with the weatherman’s forecast of severe heat wave conditions beginning May 20. It had forecasted heat wave to severe heat wave conditions in many pockets of Punjab, Haryana, Chandigarh, Delhi, West Rajasthan; some parts of West Uttar Pradesh, East Rajasthan and Northwest Madhya Pradesh during May 20 to 24.

Power demand

India power demand is rising at around 8 per cent annually due to rising consumption from industrial, commercial and households. Fitch Ratings expects power demand in April-June 2024 to grow 7-8 per cent y-o-y.

In April, power consumption surged by 10.5 per cent y-o-y to 144.3 billion units. Officials said that peak power demand recorded during the month was 224 GW, which was successfully met.

The Ministry projected peak demand to hit 235 GW during the day and 225 GW in evening during May. In June, the peak is likely to hit 240 GW (day) and 235 GW (evening).

The government already has Section 11 for gas-based power plants, which has made available additional 6 GW for May and June. This is in addition to the 10 GW already made available. Section 11 has also been invoked for imported coal based (ICB) power plants.

Under Section 11 of the Electricity Act, 2003, the government can direct gencos, under extraordinary circumstances, to operate and maintain power plants in accordance with its directions.

The optimisation of hydro power generation has made available an additional 4 GW for meeting the demand during May and June. Besides, the shifting of planned maintenance and minimisation of partial and forced outages of TPPs has made available another 5 GW for the summer season. Compared to April 2024, power generated from wind is expected to increase by 4-5 GW during May and June.

Coal stocks

Coal production during FY25 so far has grown at 7.26 per cent y-o-y, while thermal power generation is growing at 8.78 per cent y-o-y and railways rake supply is growing at 8.45 per cent on an annual basis.

Senior Coal Ministry officials said that the coal supply situation is comfortable. As of May 15, coal stocks at pitheads and in transit to thermal power plants (TPPs) rose by 25 per cent y-o-y to 147 million tonnes (mt). At TPP end, the stocks stood at 45 mt on May 15, a 29 per cent y-o-y growth. Stocks at Coal India pithead were at 85 mt, 30 per cent higher y-o-y.

As per government data, coal stocks at domestic coal based (DCB) power plants stood at 47.34 mt and 45.40 mt during April 1 and May 1, respectively. Coal stocks at DCB plants stood at 45.48 mt on April 30 and 44.57 mt on May 24.

Officials said that adequate transportation arrangements are in place to meet higher coal demand. India produced 78.69 mt coal during April, a growth of 7.42 per cent y-o-y. Dispatch to the power sector rose 5.43 per cent y-o-y to 69.83 mt.