India's power consumption increased by 5.14 per cent to 125.44 billion units in November this year from 119.30 billion units in the same month last year, according to official figures.

The increase in power demand reflects the higher level of commercial and industrial activity taking place in the economy.

A report by ICRA stated that while there has been a moderation in growth in the earlier months, the full-year demand growth is expected to remain reasonable at 5.5 to 6 per cent. The decline in demand was due to a high base and the adverse impact of heavy rainfall during the monsoon months.

The highest supply in a day (peak power demand met) also rose marginally to 207.42 GW in November 2024 from 204.56 GW in the year-ago period.

Coal stock at power plants improved in November. According to the report, the coal stock levels at power plants increased to 13 days as of November 26 from 11.6 days as of October 31. This marked the reversal of the declining trend over the past six months.

The report added that while the stock remained below the normative level, they were better than the year-ago figures.

Given the subdued demand growth and improvement in generation from hydro and nuclear power sources, the average tariffs in the day-ahead market (DAM) of the Indian Energy Exchange (IEX) stood at Rs 3.3 per unit in November 2024, significantly lower than Rs 3.9 per unit in October 2024. The report mentioned that the spot power tariffs were at a three-year low in November and closer to the long-term historic average of Rs 3 to 3.5 per unit.

The peak power demand touched an all-time high of about 250 GW in May. The previous all-time high peak power demand of 243.27 GW was recorded in September 2023.