India's power demand surges, prompting higher forecast peak

India has revised its forecast for peak electricity demand upward, projecting a surge to 384 gigawatts in the 12 months through March 2032, a 5% increase from the previous estimate issued in May.

This adjustment comes in response to energy consumption surpassing expectations, driven by factors such as rising economic activity and heightened use of air conditioners and irrigation pumps due to soaring temperatures.

The power ministry conducted a review of forecasts following a significant uptick in demand last year, prompting the revision. This surge in electricity consumption underscores the need for India to expand its coal-based power generation capacity, with coal currently constituting 70% of the country’s electricity generation.

In response to last year’s peak demand of 243 gigawatts, exceeding initial projections, India announced plans in December to add nearly 88 gigawatts of new thermal power capacity by early 2032, with coal-fired plants comprising the majority of this expansion. This decision aims to mitigate potential blackouts and ensure the stability of the nation’s power supply amid increasing demand.