In this State of the Economy podcast, Rishi Ranjan Kala talks to Sehul Bhatt, Director of Research at Crisil Market Intelligence and Analytics, on the issue of India’s surging power demand, which has grown significantly in recent years. 

“There is a strong correlation between GDP growth and power demand growth that we have observed,” highlighting the economic drivers behind this trend. As the country grapples with unprecedented climate patterns—including intense heat waves that have exacerbated electricity consumption—Sahul shares his insights on how these weather phenomena impact energy needs. He emphasises, “Temperature is very crucial and, at least in recent years, the factor that has been creating variation in power demand.” Sehul notes 

With the Power Ministry recently revising its peak demand estimates to 458 gigawatts by 2032—up from earlier predictions—it’s clear that understanding these dynamics is crucial for corporate India.   

Bhatt discusses the significant rise in electricity demand during summer months, noting, “Over the last five years, we have seen that every year the median temperature has been higher compared to the previous year.” He also addresses the challenges faced by the government in pushing for more renewable energy solutions while maintaining a reliance on thermal power to ensure grid stability. 

As India’s economy continues to grow, the demand for power is projected to increase by 6-7% annually in the coming years. Sehul explains, “Despite all efforts in terms of incremental capacities continuing towards non-fossil fuels, coal is likely to stay a strong contributor to overall generation even over the next 5-7 years.” 

Listen in! 

(Host: Rishi Ranjan Kala, Producer: Siddharth Mathew Cherian)

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