India, Mar 10 : India’s electricity consumption rose around 2 per cent year on year in February, touching 133 billion units (BUs) compared with 131 BUs in the same month last year, marking the highest level for February since at least 2010, according to a report by CRISIL Intelligence.
The increase was largely driven by above normal minimum and maximum temperatures across several regions, which lifted cooling requirements and boosted overall electricity usage.
The report projected that power demand in fiscal 2026 could grow by 1–1.5 per cent year-on-year, reaching between 1,705 and 1,715 BUs. The expected rise is linked to a harsh winter, early arrival of higher temperatures towards the end of the fiscal year, and stable economic activity, though partly offset by the impact of a prolonged monsoon.
Temperature variations during the month also influenced consumption trends. While northern and eastern regions experienced relatively cooler conditions early in February, demand picked up later as temperatures climbed. Between February 19 and 25, maximum temperatures were 4–6°C above normal across parts of the western Himalayan belt and the northwestern plains, while minimum temperatures remained 2–4°C above normal in many areas.
From April to February of the current fiscal year, overall electricity consumption rose modestly by about 0.9 per cent compared with the previous year, the report noted.
Industrial expansion also supported the increase in usage. India’s manufacturing activity continued to grow in February, with the Manufacturing Purchasing Managers’ Index rising to 56.9 from 55.4 in January. The report highlighted that nearly half of India’s electricity demand comes from industrial and commercial consumers, making manufacturing growth a key driver of energy consumption.
Peak electricity demand during February reached 244 gigawatts (GW), slightly higher than the summer peak of 243 GW recorded in June. However, it remained marginally below the January peak of 245 GW, largely due to increased cooling requirements amid rising temperatures.
Power generation also increased, growing about 2.4 per cent year-on-year to an estimated 145 BUs during the month. Coal-based generation dipped slightly by around 0.5 per cent, while output from other sources posted gains.
Renewable energy generation continued its upward trend, supported by the addition of 39.6 GW of new capacity between April and January of fiscal 2026. Hydropower and nuclear generation also rose significantly, increasing by 15.5 per cent and 17.3 per cent respectively.
Despite the growth in renewables, coal remained the dominant source of electricity, accounting for roughly 73 per cent of total power generation in February. The report noted that coal-fired plants provide flexibility in adjusting output to meet fluctuating demand.
Coal availability at thermal plants also improved. As of February 28, coal stockpiles stood at 59 million tonnes, compared with 54 million tonnes a year earlier. Inventory levels were equivalent to about 19 days of consumption, slightly higher than the 18 days recorded in January.