Electricity demand growth remained subdued in FY2026; growth estimated at 5% for FY2027 as seen by increasing demand in summer. Thermal PLF projected to hover at 65-66% for FY2027 amid rising renewable generation. Led by renewables, the gross installed capacity addition surged to 61.6 GW in FY2026, with likely total addition of 50 GW for FY2027.
All-India electricity demand remained subdued in FY2026, with marginal growth of 0.8% YoY due to prolonged Southwest Monsoons led by heavy rainfall in several regions of the country and an unfavourable base of last year. In FY2027, demand growth is likely to rebound to 5% and as already seen in April and May 2026.
The growth is supported by expectations of normalised weather conditions, probable El Nino conditions, a lower base, and continued growth in industrial and commercial activity. This outlook is underpinned by structurally healthy fundamentals, as evident from the strong demand growth during FY2022–FY2024, driven by favourable base effect, weather-related demand spikes, and steady economic momentum.
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