HSBC has noted a significant uptick in India’s power demand as summer approaches, with March 2025 demand and peak load up 7% and 6% YoY respectively, following similar gains in February. The brokerage attributes the reduced instances of power shortages to smart peak load management, especially as most peaks occurred during solar generation hours.
Over the last 12 months, India has added approximately 27GW of renewable energy capacity and 7GW of thermal capacity, ensuring a relatively smooth supply during high-demand periods. Power experts now anticipate peak summer demand could exceed 270GW, up from 250GW in CY24. In response, the government has extended Section 11, mandating all thermal plants to generate power to their full capacity during peak demand months. HSBC expects this proactive measure to help avert any major power crises in the coming quarters.
