Electricity prices in the spot market rose by almost 16.9% on year so far this month and might increase further, as summer peaks. Data from the Indian Energy Exchange showed that the market clearing price in the Day Ahead Market (DAM) stood at Rs 4.57 per unit in the first ten days of March, compared to Rs 3.91 per unit discovered in the same period last year.
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The country’s peak demand for power has been continuously rising at a compound annual growth rate of 6%. On March 11, the peak power demand touched 235 gigawatt (GW), as per latest data from Grid Controller of India, surpassing the maximum peak demand of 222 GW recorded in March 2024. The peak power demand during March 11, 2024, a year ago, stood at 218 GW.
“India has been experiencing warmer weather this year, and the trend has continued into March. As a result, the country’s energy consumption during March 1–10, 2025, marked a 10% increase compared to the same period last year. Similarly, peak power demand has also risen,” said Rohit Bajaj, Joint Managing Director, Indian Energy Exchange.
Looking ahead, with the onset of summers, power demand is expected to rise further, with peak demand projected to cross an earlier high of 250 GW. India’s peak demand for power that has been rising at a compound annual growth rate of 6% is now expected to grow at a CAGR of 7% in the next five years owing to increased economic activity and setting up of new industries, Ghanshyam Prasad, Chairperson of the Central Electricity Authority had earlier told FE. This year, the government expects peak power demand to touch 270 GW.
“The government has been implementing measures to enhance supply, including extending the directive for imported coal-based power plants to operate at full capacity until April 30 and ensuring the availability of gas-based plants to meet peak demand. Additionally, the revival of 10–15 GW of generation capacity from the 45 GW currently under outage, along with continued additions in renewable and thermal capacity, is expected to bring additional supply in the coming months to meet demand,” Bajaj said.
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The country’s coal based power plants are also ramping up coal stocks to meet the expected surge in the demand for power.
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