India’s February Power Consumption Hits Record 133 BUs

India’s electricity consumption reached about 133 billion units (BUs) in February, compared with 131 BUs in February last year, the highest level recorded for the month since at least 2010.

The increase was mainly driven by above-normal temperatures in several regions, which boosted cooling demand, along with continued growth in manufacturing activity, according to a Crisil Intelligence report.

What Drove Higher Electricity Demand?

Crisil Intelligence pointed out that higher temperatures across multiple parts of the country played a major role in boosting electricity use.

Between February 19 and 25, maximum temperatures were 4–6°C above normal in parts of the western Himalayan region and the plains of northwest India.

During the same period, average minimum temperatures remained 2–4°C above normal across most regions of the country.

Industrial activity also fuelled the growing demand. India's manufacturing purchasing managers' index (PMI) rose to 56.9 in February, up from 55.4 in January, indicating ongoing growth in factory production.

According to the Crisil Intelligence report, around half of India’s power demand comes from industrial and commercial consumers, making manufacturing activity an important driver of electricity consumption.

The trend was also reflected in peak power demand figures. February recorded a peak demand of 244 gigawatts (GW), slightly higher than the summer peak of 243 GW recorded in June 2025 and just 0.5% below January’s peak of 245 GW.

How Did Power Markets Respond?

The rising power consumption was even reflected in the short-term power markets. The amount of power trading in the real-time electricity market (RTM) increased rapidly to 4,379 million units (MU) in February, as against 2,887 MU during the same month last year, marking a 51.7% year-on-year hike.

Despite rising demand, electricity prices on exchanges fell due to ample supply.

The average RTM clearing price declined 19% year-on-year to ₹3.59 per unit, while prices in the day-ahead market fell about 18% to ₹3.58 per unit.

Lower prices allowed distribution companies and industrial consumers to meet electricity needs through power exchanges at relatively competitive rates.

Electricity generation also increased during the month. Total generation in February was approximately 145 billion units, up 2.4% year-on-year. Among the different types of sources, hydropower and nuclear generation saw remarkable increases of 15.5% and 17.3%, respectively.

At the same time, renewable energy production continued to escalate with the addition of new capacity.

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What Investors Should Watch Next?

Investors may track temperature trends and seasonal weather patterns, as electricity consumption is closely linked to the climate in India. So, if it is hotter over the next few months, that could work to keep consumption up.

Market participants may even be interested in measuring industrial activity, e.g., through manufacturing PMIs, since industrial and commercial users consume the bulk of power.

In addition, changes in power exchange prices, additions to renewable capacity, and general trends in electricity generation can indicate the direction of the power sector as India gears up for increased energy consumption next fiscal year.

Sources:

Financialexpress

ET