Indian Electric Utilities & IPPs: Power Demand Firms Up In Summer Heat, Market Remains Well Supplied

Research evidence excerpt

Indian Electric Utilities & IPPs: Power Demand Firms Up In Summer Heat, Market Remains Well Supplied

J P M O R G A N Asia Pacific Equity Research

19 June 2026

Indian Electric Utilities & IPPs

Power Demand Firms Up In Summer Heat, Market

Remains Well Supplied

India’s power demand picked up in May 2026, with monthly energy demand up India Industrials, Electric Utilities,

11% y/y to 165 BUs and peak demand up 17% y/y to a record 270 GW, driven and Infrastructure Sectors

largely by summer heat. Growth eased in June, with 7-day peak demand growth Atul Tiwari AC

slowing to 6.8% y/y as the seasonal surge moderated. Despite firmer demand, the (91-22) 6157-3582

market has remained well supplied, with energy and peak deficits holding near zero atul.tiwari@jpmorgan.com

through FY26. Capacity additions remain renewable-led, total installed capacity Muskan Agarwal

stands at 537 GW, the renewable share has climbed to 52% from 40% in early 2023, (91-22) 6157-3226

India now ranks third globally in renewable capacity, and the BESS pipeline is set muskan.x3.agarwal@jpmchase.com

J.P. Morgan India Private Limited, J.P. Morgan

to scale up sharply to 39 GW/121 GWh by FY29 from 767 MW/2,524 MWh in Tower, Santacruz(E), Mumbai - 400098, SEBI

FY26. Reflecting this comfortable balance, short-term prices have softened to the Registration: INH000001873, (91-22) 6157-3000.

Rs 4.4/kWh range from a peak of Rs 7.6/kWh in Apr-22, even as traded volumes

climbed to 23 BUs.

Power demand picks up in May on summer heat - Power demand growth in

India improved in May, with monthly energy demand growing 11% y/y to 165 BUs

and monthly peak demand growing 17% y/y to 270 GW, the highest peak so far.The

pick-up in demand is largely seasonal, driven by the onset of summer. On a daily