India’s electricity demand dropped by 5.2% in October 2025, because of the unseasonal rains and cooler temperatures that reduced the need for air conditioning, according to a power sector update by Nuvama Research.
Average temperatures fell to 25.6°C from 27.1°C last year, leading to lower power consumption nationwide. The country’s peak power demand also slipped to 210 GW, down from 219 GW in October 2024.
Thermal power generation took a major hit, with the all-India plant load factor (PLF) dropping to 57.5%, the lowest in four years. NTPC’s PLF fell sharply to 68% from 78.1% last year. Despite the slowdown, thermal energy still made up about 70% of India’s total power generation.
The report highlighted a major shift in market dynamics, solar-hour supply surged 422% higher than demand, causing prices to fall to ₹2.2 per kWh, while non-solar-hour prices dropped to ₹3.2 per kWh, compared to ₹4.7 per kWh last year.
Meanwhile, the India Energy Exchange (IEX) recorded a 16% year-on-year rise in total power volume, mainly due to a 47% growth in real-time market (RTM) trades.
Coal supplies remained healthy, with nationwide coal stocks at 15.3 days, up from 12.1 days last year. Power plants held 47 million tonnes of coal, a 34% increase year-on-year, though NTPC’s coal inventory at 16 days is still below the standard 21-day level.
India’s total power capacity reached 501 GW, with renewable energy adding 25 GW so far in FY26, and 22 GW of that came from solar power till September 2025.
Renewables now make up about 30% of India’s total power generation, highlighting the country’s growing shift toward clean energy.
The report also said India is working on a 337 GW pipeline of new green energy projects, but about 44 GW of approved projects are still waiting to sign power sale agreements (PSAs).
Going forward, new renewable projects are likely to focus on storage-based and round-the-clock (RTC) power systems to provide more stable and reliable electricity.
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