The Aryavarth Express
New Delhi: India’s electricity consumption rose by around 2 percent year-on-year in February, reaching 133 billion units (BUs) compared with 131 BUs during the same month last year, according to a report by Crisil. The figure marks the highest power demand recorded for February since at least 2010.
The Crisil Intelligence report attributed the increase largely to above-normal temperatures across several parts of the country, which drove higher demand for cooling.
For fiscal year 2026, the report estimates India’s power demand will grow 1–1.5 percent year-on-year, reaching 1,705–1,715 BUs. The expected rise is linked to a harsh winter, the onset of above-normal temperatures toward the end of the fiscal year, and steady economic growth, although a prolonged monsoon could partly offset the increase.
Despite cooler conditions in northern and eastern regions at the beginning of February, demand remained strong. Between February 19 and 25, maximum temperatures were 4–6°C above normal in parts of the western Himalayan region and the plains of northwest India, while the weekly average minimum temperature was 2–4°C above normal across much of the country.
Between April and February, India’s total power demand increased 0.9 percent year-on-year, the report said.
Industrial activity also contributed to rising consumption. India’s Manufacturing Purchasing Managers’ Index (PMI) rose to 56.9 in February from 55.4 in January, reflecting continued expansion in the manufacturing sector. Since around 50 percent of India’s electricity demand comes from industrial and commercial consumers, growth in manufacturing significantly influences overall power usage.
During February, peak power demand reached 244 gigawatts (GW), slightly exceeding the summer peak of 243 GW recorded in June. However, it remained marginally below the January peak of 245 GW, driven mainly by increased cooling demand amid rising temperatures.
Power generation also increased by about 2.4 percent year-on-year, reaching 145 BUs in February. While coal-based power generation declined slightly by around 0.5 percent, output from other sources rose.
Renewable energy generation has maintained a consistent growth trend since April 2025, supported by the addition of 39.6 GW of renewable capacity between April and January of fiscal 2026. Hydropower and nuclear energy generation also recorded significant growth, rising 15.5 percent and 17.3 percent, respectively, during the month.
Despite the growth in renewables, coal remains the dominant fuel, accounting for about 73 percent of total electricity generation in February. According to the report, coal’s dominance reflects its flexibility in ramping power generation up or down based on demand.
As of February 28, thermal power plants had 59 million tonnes (MT) of coal stock, compared with 54 MT in February 2025. This represents the highest coal inventory since July 2025, with reserves equivalent to 19 days of consumption, slightly higher than 18 days recorded in January.
