India's power production rises at the fastest rate in five months due to industrial boost

The data of the federal grid operator revealed that India's electricity generation in August increased at its fastest rate since March. Manufacturing activity was accelerating due to strong demand.

Grid India's daily analysis showed that the 4% increase in output of electricity last month led to a first-time annualised boost in coal-fired generation in five months.

This year, India's dependence upon coal has been reduced by the sustained growth of renewable energy capacity. About three-quarters of the annual electricity is generated by coal.

As the monsoon begins to subside this month, and the industrial activity increases, Vikram V., vice president for corporate ratings at Moody's ICRA, expects a higher power demand in the September and the December quarters.

In August, India's manufacturing sector reached its highest level since February 2008 The industries account for about half of the domestic electricity consumption.

The electricity demand has decreased this year as a result of a general industrial slowdown, and the heavy rains that have weighed on cooling demands. However, it had begun to increase in July.

Vikram stated that if it weren't for the rains in August, the growth of the electricity demand would have been higher.

Grid India data revealed that the share of coal used in electricity generation increased to 64.8% by August. This is up from 64.3%, which was a record low for five years.

The data revealed that a 23% increase in renewable energy sources like solar and wind, and a growth of 9% in hydropower production accounted for most of the growth in power production to 161.24 billion Kilowatt Hours (kWh).

India has added 25.4 GW in solar and wind power capacity during the first seven months 2025. It plans to increase this capacity to 500 GW before 2030. (Reporting and editing by Sethuraman N; Sonia Cheema).

(source: Reuters)