ByTsvetana Paraskova– Mar 25, 2025, 8:00 AM CDT
More heat waves are expected to push up India’s peak power demand by 9-10% this summer, according to industry experts.
In 2024, India’s peak electricity demand surged in May above forecasts due to intense heat waves, and peak demand topped 250 gigawatts (GW) at the end of May.
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Power demand in India hit record-high levels in May and June last year as more consumers use electricity for cooling during the heat waves.
The more frequent and more intense heat waves are pushing higher the demand for cooling and air conditioning, which is set to surge in India with the rise of the middle class numbers, analysts say.
“India must now brace for extended heatwaves and a peak electricity demand growth of 9-10 per cent,” Disha Agarwal, Senior Programme Lead – Renewables, at Indian think tank Council on Energy, Environment and Water, told The Economic Times, commenting on the 2025 summer.
“However, our analysis shows that this peak demand will only last for a short period,” the analyst added.
Last year, India saw strong growth in peak electricity load amid economic growth and rising AC usage, the International Energy Agency (IEA) said earlier this year in a report on global electricity trends.
Following an 8.3% increase in 2023, electricity demand in India grew by another 5.8% in 2024 amid robust economic growth. While electricity consumption rose by a robust 8.5% during the first half of the year due to intense and long heatwaves, the second half saw a more subdued growth in demand amid milder weather, the IEA said.
Peak electricity load in India soared from 148 GW in 2014 to 250 GW in 2024, a 68% jump in the decade, driven by the rapid expansion of its industry, development of agriculture, enhanced electricity access, and increased use of air conditioning and appliances in the residential and commercial sectors.
“While good interconnections among states and the operation of thermal power plants allow Indian utilities to cover demand in energy terms throughout the year, the rapid increase in yearly peak load poses a major challenge for the electricity grid and national authorities,” the IEA noted.
Going forward, India’s electricity demand is expected to grow by 6.3% annually from 2025 to 2027 on average. Rising air conditioner ownership will continue to bolster electricity demand growth, the IEA says.
By Tsvetana Paraskova for Oilprice.com
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