India may see another sharp rise in electricity consumption during the current financial year as higher temperatures and below-normal rainfall increase the demand for cooling as the country’s power demand is going to accelerate to see a growth of 6.5% to 7.5% after this year .
The country’s power demand is expected to grow at 7.5% and to reach a total electricity consumption of 1,825-1,835 billion units in FY27.
The forecast comes at a time when weather patterns are becoming a more prominent factor in India’s power consumption. Hotter conditions typically cause households, offices, shops and factories to rely more heavily on air conditioners, coolers and fans, adding to the electricity grid’s burden.
Heat is expected to drive electricity consumption
The increase in cooling requirements is likely to be one of the biggest reasons for the predicted increase in power demand. Long periods of high temperatures can significantly increase electricity use, particularly during afternoon and evening hours when cooling appliances are operating at full capacity.
The rise in consumption is already evident. Electricity demand was up sharply compared to the same period last year, which indicates the effect that weather can have on the country’s energy requirements.
Drier conditions may further contribute to that trend. Lower rainfall can reduce the availability of hydropower in some regions and also create hotter conditions that will make electricity usage more expensive.
Peak demand Remains a Concern
The challenge for power companies is not just the total amount of electricity consumed but the timing of demand as well. When millions of consumers switch on cooling equipment at the same time, electricity usage can surge within a short period.
India had a peak power demand of around 270.8 GW in May, reflecting increased demands on the power system during hot days. Control of these peaks will be important as temperatures rise and electricity use continues to rise.
So power generators and grid operators may have to hold sufficient reserves in case of supply shortages in high demand periods.
Renewable Energy to Play a Bigger Role
The increase in electricity consumption also puts greater focus on India’s renewable energy expansion. Solar and wind power generation in India has soared and that is going to help the country to get a greater share of its electricity from cleaner sources.
But renewable generation can fluctuate depending on weather and the time of day. So on this basis, energy storage, flexible generation and a robust transmission network are increasingly important to maintain reliable electricity supplies in the longer term.
What it means for consumers
In households, higher electricity demand during hotter months could mean more air conditioners, coolers and fans would be used and power bills would be higher.
For the larger economy, reliable electricity supply is critical to homes, businesses, manufacturing plants, and infrastructure. Cooling demand will need to be balanced by power companies to keep up with rising consumption and generation and grid capacity.
Crisil’s forecast underlines the increasing link between India’s weather patterns and its energy needs.
With a potential increase in electricity demand of as much as 7.5% this fiscal year, preparing the power system for hotter and drier conditions will be the priority.
