India’s Power Generation Grows 5.4% In FY25 On Higher Demand

India’s power generation went up 5.41% in April-December of the current financial year to 1,378.42 billion units, as compared with 1,307.64 billion units in the year-ago period, according to data from the Central Electricity Authority (CEA). This assumes importance given that energy consumption, especially that of electricity and refinery products, is typically linked to overall demand in the economy. The winter demand for electricity has also been higher this year leading to a 5.76% growth in December to 150.53 billion units. Amid a cold wave across north India, Delhi on 31 December registered a peak demand of 5,213MW, the highest ever for the month. Last December, demand crossed the 5,000MW mark for the first time. On Thursday, the peak demand stood at 4,599MW. Renewable energy projects comprised the majority of the capacity addition. A total of 18.83GW of green capacity was added during the period, more than double the capacity added in the corresponding period of the last fiscal, 8.72GW. The increase in capacity addition comes on the back of developers going for faster commissioning of projects ahead of the expiry of the inter-state transmission system (ISTS) charges exemption for renewable energy projects. ISTS charges are meant to be paid by power generation companies to transmission companies for supplying power to states other than where the generation company is generated. Currently, ISTS charges are waived for 25 years for green projects—solar, wind, hybrid, battery energy, and pump storage projects—that are commissioned before 30 June 2025

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