Electricity demand remained flattish YoY in the first 19 days of February 2026, as per POSOCO data, marking a recovery after contractions in earlier months. Despite this improvement, full-year demand growth for FY2026 is expected to remain modest at 1.5–2%. However, growth is projected to rebound to around 5% in FY2027, trailing expected real GDP growth of 6.0–7.0%.

• Demand growth remained flattish YoY in February 2026 as per provisional data from the Power System Operation Corporation (POSOCO): India’s electricity demand growth has been weak in FY2026 YTD, impacted by early and prolonged monsoon conditions and a high base effect. However, demand growth remained flattish on a YoY basis in the first 19 days of February 2026, as per data from POSOCO, due to a slow recovery during the winter season. Reflecting the growth trend in FY2026 YTD, full-year growth for FY2026 is expected to remain in line with ICRA’s growth forecast of 1.5-2.0%. However, demand growth is expected to rebound to around 5% in FY2027, supported by expectations of normalised weather conditions, a lower base, and continued momentum in industrial and commercial activity.
  
• Spot power tariffs on the Indian Energy Exchange (IEX) averaged Rs. 3.1 per unit as of February 12, 2026, lower than Rs. 3.9 per unit in January 2026. Prices were much lower to February 2025 level of Rs. 4.4 per unit due to subdued demand growth in February 2026. However, spot tariffs declined during May–November 2025 as well as in January-February 2026 due to an improved supply position and low demand growth.

Source: ICRA Research, Central Electricity Authority (CEA), POSOCO