Strong power sector growth in India for FY2025, with demand at 6%.

India’s power sector is projected to experience robust growth in the fiscal year 2025, with an expected demand surge of approximately 6.0 percent, moderating from the previous fiscal year’s higher growth rate.

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This positive outlook is supported by the significant demand increase observed in the first two months of FY25, which exceeded 10 percent, driven by a favorable base. This trend is corroborated by the Ministry of Power’s announcement of a record maximum power demand of 250 GW on May 30.

In FY24, electricity demand saw a substantial upturn with a 7.6 percent year-on-year increase, spurred by resilient economic activity and weather-related loads. This rise in demand led to an improvement in the nationwide average thermal plant load factor (PLF), which increased to 69.1 percent in FY24 from 64.2 percent in FY23. Additionally, the total power generation capacity addition rose to 25.4 GW in FY24, up from 16.9 GW in FY23, driven by enhancements in the renewable energy and thermal segments, as well as the commissioning of 1.4 GW of nuclear power capacity.