India's peak power consumption has moderated from record levels recorded in May as the arrival of monsoon showers across several parts of the country reduced the need for air-conditioners and other cooling appliances. The decline in electricity demand has also led to lower prices in the country's power markets, providing relief to consumers and distribution companies after weeks of elevated consumption.
According to data released by the Grid Controller of India, peak electricity demand fell to 241 gigawatts (GW) on June 16 from an all-time high of 270.8 GW recorded on May 21. The latest figure is also lower than the 259 GW peak registered on June 9, reflecting the impact of seasonal rainfall and milder temperatures on energy consumption.
On June 16, peak demand during solar hours reached 249.7 GW, while demand during non-solar hours stood at 247.5 GW. Coal-fired power plants continued to dominate electricity generation, accounting for 68% of total output, while solar energy contributed 19% and hydropower supplied 7% of the country's electricity mix.
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The easing in demand has also pushed down electricity prices on the Indian Energy Exchange. The average spot power price in mid-June stood at Rs 3.6 per kilowatt-hour (kWh), an 18% decline compared with the same period last year. Prices in the real-time market also dropped to Rs 4.5 per kWh on June 16 from Rs 6.5 per kWh recorded on May 21, when demand had surged to record highs.
India's electricity consumption typically reaches its highest levels during May and June as households, commercial establishments and industries increase the use of cooling equipment to cope with summer heat. The onset of the southwest monsoon generally lowers temperatures, reducing power demand while simultaneously improving water availability for hydroelectric generation in several regions.
Despite the recent decline, electricity demand remains significantly higher than the corresponding period last year. On June 16, 2025, the country's peak demand met was 217 GW, indicating continued growth in energy consumption driven by expanding economic activity, rising urbanisation and increasing adoption of electrical appliances across residential and commercial sectors.
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