Power consumption drops by 5% in August due to lower temperatures

03 Sep 2024

In August, India's power consumption dropped approximately 4.9% year-on-year to 144.2 billion units, primarily due to cooler temperatures from increased rainfall. This represents a 4.2% decrease from July, reflecting reduced use of cooling appliances.

In June, consumption was 152.4 billion units, 5.7% higher than in August. The heavy rains also led to a significant decrease in power prices on the Indian Energy Exchange, with the average daily price in the day-ahead market falling 35.5% year-on-year to ?4.33 per unit. Last year, August was warmer with less rainfall, leading to higher power demand for cooling and irrigation.

Peak power demand on August 31 was 207 GW, down from 236.6 GW. Coal stocks at power plants were sufficient, with 39.8 million tonnes available, covering around 18-19 days of consumption. The Indian Meteorological Department reported 287.1 mm of rainfall in August, about 16% above the normal 248.1 mm.