India’s February power demand hits 15-year high amid rising temperatures: Crisil

NEW DELHI: India’s power demand increased by approximately 2 per cent in February to reach 133 billion units (BUs), compared with 131 BUs during the same period last year. This consumption represents the highest level for the month since at least 2010.

According to a Crisil Intelligence report, the surge is attributed to above-normal minimum and maximum temperatures in several parts of the country, which heightened the requirement for cooling. For fiscal 2026, the report estimated power demand to increase 1-1.5 per cent year-on-year to reach between 1,705 and 1,715 BUs.

“In fiscal 2026, we estimate power demand to increase 1-1.5 per cent on-year to 1,705-1,715 BU, owing to a harsh winter, onset of above-normal temperatures towards the end of the fiscal and steady economic growth, partially offset by a prolonged monsoon”, the report said.

The rise in consumption occurred despite cooler temperatures in the northern and eastern regions at the beginning of the month, which limited overall power usage. Between February 19 and 25, “the maximum temperature was above normal by 4-6 oC over parts of the western Himalayan region and the plains of northwest India, while the weekly average minimum temperature was above normal by 2-4oC over most parts of the country”.

Crisil Intelligence report noted that between April and February, total power demand increased by a marginal 0.9 per cent YoY. Industrial activity also played a role in the consumption trend. India’s manufacturing activity continued to expand in February, with the Manufacturing Purchasing Managers’ Index (PMI) rising to 56.9 from 55.4 in January.

“With ~50 per cent of India’s power demand arising from industrial and commercial consumers, expansion of the manufacturing and industrial activity is imperative for growth in power demand”, the report stated.

February recorded a peak power demand of 244 GW, slightly surpassing the summer peak of 243 GW seen in June. This peak was only 0.5 per cent lower than the January peak of 245 GW, driven by “the surging demand for cooling amid rising temperatures seen during the month”.

Power generation also rose an estimated 2.4 per cent YoY to 145 BUs in February. While coal-based generation declined marginally by approximately 0.5 per cent, all other major fuels logged higher output.

Renewable energy (RE) generation maintained its “growth streak since April 2025”, supported by the addition of 39.6 GW of RE capacity between April and January of fiscal 2026. Hydro and nuclear power generation also increased by 15.5 per cent and 17.3 per cent, respectively, during the month.

The report noted that coal remains the primary fuel for electricity, accounting for approximately 73 per cent of total generation in February. This reliance “highlights the ease of using coal to ramp generation up or down in accordance with power demand.”

“As on February 28, thermal power plants had 59 million tonne (MT) stock of coal vs 54 MT in February 2025. This marks the highest level of coal stock at the plants since July 2025, which is notable, considering coal remains the primary fuel for electricity generation in India. Coal inventory was at 19 days, compared with 18 days in January,” the report said. (ANI)