India’s electricity demand is expected to grow at an average 6.3% annually over the next three years, stronger than the 2015-2024 average growth rate of 5%, as per the forecast by the International Energy Agency. The strong demand for electricity is supported by economic expansion and rising air conditioner ownership, as per the agency.
Over the forecast period, the country is also expected to continue recording strong growth in electricity consumption, and will account for 10% of the total increase in global demand by 2027.
ALSO READED notice to Paytm’s parent company over Rs 611 crore FEMA violation; shares drop 4%
The forecast makes it incumbent on the government to take steps to ensure that supplies keep pace with the rising demand and no shortages are felt. The government is pushing coal-based power generation beyond the levels envisaged under National Electricity Plan to ensure that no outages are caused during summer seasons over the next few years.
The country’s electricity demand in 2024 grew by 5.8% on-year after a strong 8.3% increase in 2023 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 last year.
“Supported by rapid economic expansion and increasing electrification, India’s electricity demand is forecast to grow at a high rate of 6.3% annually from 2025 to 2027 on average,” said the agency.
IEA highlighted that rising air conditioner ownership will continue to bolster electricity demand growth.
Peak electricity load in India has shown strong growth in recent years, rising from 148 GW in 2014 to 250 GW in 2024, led 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.
“As a result, electricity demand in these sectors rose by around 60-65% between 2014 and 2024. 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,” said the IEA.
It noted that even though less than 20% of households in the country are equipped with an air conditioner,
» Read More
