SectorVector - Watered down

Power demand in March rose to ~149 billion units (BUs), surpassing the 147 BUs recorded in the same month last year. Notably, this marks the highest March consumption since at least 2010. However, the growth rate was a modest 1.7% on-year owing to above normal rainfall and a high base effect.

Given the change in power demand, generation is estimated to have increased a moderate ~1.8% on-year to 163 BUs in March. 

Apart from gas, all major fuels saw an on-year increase in power generation.  Generation of renewable energy (RE) rose on year, a trend visible since April 2025 which can be attributed to the increase in capacity addition. The country has added 50.9 GW of RE capacity (including small hydro) in fiscal 2026.

Power demand is estimated to rise 5.5-6.5% on-year in fiscal 2027 to 1,815-1,825 BUs, because of the expected emergence of El Nino in July, which will increase temperatures and reduce rainfall, in turn pushing up cooling demand. Steady economic growth and low base are also estimated to boost power demand growth rate in fiscal 2027.