India’s Power Grid Faces Unprecedented Winter Surge

India saw a seasonal record power consumption in December, with peak demand surging very close to the summer levels, when electricity demand in the country is at its highest. 

Chillier weather in December and the increased use of heating appliances have resulted in peak demand surging to 241 gigawatts (GW), up by 7.5% compared to December 2024, according to data from India’s Central Electricity Authority cited by Bloomberg.

This was very close to the 243 GW peak demand this summer. India’s electricity demand is typically at its highest during the summer amid heat waves and scorching temperatures. 

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But this year, manufacturing activity has been boosted in the winter while the use of heating appliances has been rising with more households moving into the middle class tier.  

The last time December peak demand has exceeded the summer peak in India was in 2020, when economic activity slumped in the summer during the Covid lockdowns and restrictions. 

In 2025, India saw its summer electricity demand lower compared to 2024, amid cooler temperatures and early-summer rainfalls. 

India’s coal power generation dipped in May 2025 to the lowest since the Covid lockdowns of 2020, as a lack of heatwaves and soaring renewable energy installations and generation pushed down coal demand in the electricity sector.  

India’s industrial activity was low in the early summer, before rebounding in August and driving the fastest growth in electricity generation in five months. 

In July, India boasted achieving five years ahead of schedule its target to have 50% of its installed electricity capacity coming from non-fossil fuel sources.  

This installed capacity, however, does not mean renewable power generation will soon replace coal in India, especially if grid constraints and battery and transmission delays persist.   

Despite the surge in renewables, coal remains the dominant power-generating source in India accounting for about 60% of total electricity output. 

By Tsvetana Paraskova for Oilprice.com

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