In 2025, India is likely to face one of the hottest summers in recent history, with experts predicting peak hour electricity demand between April and October to touch a new record of 270 gigawatts (GW). That will be 20 GW higher than the record peak demand of 250 GW recorded in May, last year.

The Central Electricity Authority (CEA) estimates that India’s peak demand for power will grow at a compound annual growth rate (CAGR) of 7% in the next five years to reach 446 GW by 2030, thanks to increasing economic activities and new industries.

The Union Power Ministry is confident of meeting the additional demand during the summer, as India successfully met an all-time maximum power demand of 250 GW and reduced energy shortages at the national level to a mere 0.1% in FY25.

In January, electricity generation was 147.52 billion units (BU), compared to 144 BU generated in January 2024. The All India installed capacity now stands at 467.9 GW, of which 52% plus capacity is from fossil fuel sources like coal, lignite, gas and diesel. The ministry also expects at least15 GW of new thermal capacity and about 32GW of renewables to come onstream during the year.

As done in the past few years, about 17 imported coal-based power plants have been allowed to stock fuel and run at full capacities till April. Gas based power plants are expected to provide about 12 GW as done in the last year and plans are to tie-up for more additional capacities. Similarly, hydro plants also have been directed to conserve more water to meet the summer peak hour demand.

Sources say more than 63 coal plants have adequate stocks to operate for a month, as of March 17. India's total coal production was 167.36 million tonnes (MT) in February 2025, a 32.53 per cent year-on-year growth when compared to the production in the same period of the previous year. For the April-February FY25 period, total supply increased by 3.36 per cent to 732.8 MT, which includes 52.4 MT of imported coal and 680.4 MT of domestic coal.

The main producer public sector Coal India has set a production target of 788 MT for FY25. Total coal dispatch for the financial year has also risen to 170.66 MT, compared to 128.45 MT recorded in the previous year.