2024 was officially the warmest year ever recorded in India, marked by prolonged and intense heatwaves that placed unprecedented stress on the country’s power system. In this context, the Centre for Research on Energy and Clean Air (CREA) analysed electricity data for the period FY 2019–20 to FY 2024–25 to capture key trends in electricity demand, supply, and coal stock position amid rising temperatures and changing consumption patterns.
Peak electricity demand analysis: Slower growth after a high surge year
In FY 2024–25, the peak demand met rose to 250.1 GW, registering a 4.2% increase over the previous year. Interestingly, this figure nearly matched the total peak demand including unmet demand of 250.2 GW, indicating that the gap between demand and supply significantly narrowed, with just 0.1 GW (118 MW) of demand unmet.
Electricity generation: thermal dominant but reduced year-on-year (YOY) growth
India’s electricity generation in FY 2024–25 touched a new high of 1,821 billion units (BU) marking a continuation of the upward trajectory since the pandemic slump. This represents a 5% year-on-year growth over the 1,734 BU generated in FY 2023–24. The pace of growth has started to moderate. FY 2023–24 recorded a 7% increase over the previous year, and the year before that a sharp 9% rise.
In FY 2024–25, India’s electricity generation rose across all sources. Thermal grew by 2.8% (1,326 BU to 1,363 BU), nuclear by 18.4% (48 BU to 57 BU), large hydro by 10.8% (134 BU to 149 BU), and renewables by 11.4% (226 BU to 252 BU).
Coal stock and production trends at the start of FY 2025–26
At the start of FY 2025–26, coal stock at thermal power plants stood at 58.1 million tonnes, reflecting a 15% increase over the 50.5 million tonnes recorded at the beginning of FY 2024–25. This continues a trend of higher opening stocks in recent years, compared to 36.9 million tonnes in April 2023 and 25.4 million tonnes in April 2022, suggesting an emphasis on pre-season stock accumulation amid rising power demand.
Moreover, coal-based power generation recorded its slowest year-on-year growth of 2.8% in FY 2024–25 since the COVID-19 period (FY2020-21), even as overall electricity generation continued to rise. While peak electricity demand remained nearly unchanged over the past two years, the peak demand met increased from 240 GW to 250 GW in FY 2024–25. Notably, this increased demand was met largely with renewable energy.
According to a recent analysis, India ranked third globally in renewable energy generation in 2024. The new battery storage guidelines mandating storage for upcoming renewable projects signal progress toward a more flexible grid, paving the way for meeting future peak demand reliably.
