Residential power use rises 10% annually amid intensifying heatwaves: Experts
in India has been rising steadily by around 10 per cent annually over the last three years, driven by rapid urbanisation, intensifying heatwaves and population growth, experts have said.
Experts from the Institute for Energy Economics and Financial Analysis (IEEFA), an independent think tank, said the residential sector accounted for 31 per cent of the country's total electricity consumption in the financial year 2024.
The industrial, commercial and agricultural sectors accounted for approximately 32 per cent, 10 per cent and 22 per cent of electricity sales respectively, they said in a briefing note.
In 2024 alone, air-conditioner sales surged by 40 to 50 per cent, reflecting a growing demand for indoor cooling amid intensifying heatwaves, they said.
According to another recent study, India adds 10 to 15 million (one crore to 1.5 crore) new air-conditioners annually, with another 130 to 150 million (13 crore to 15 crore) expected over the next decade.
Without policy intervention, air-conditioners alone could drive 120 gigawatt of peak power demand by 2030 and 180 GW by 2035, nearly 30 per cent of the projected totals.
Rural electrification is also playing a key role in increasing residential demand. With near-universal household electrification achieved under schemes like Saubhagya and feeder segregation improving the supply quality, millions of rural households are now receiving longer and more reliable power supply.
The IEEFA's analysis of national peak demand trends showed a consistent year-on-year growth, with FY2025 recording the highest monthly peaks so far. May and June have regularly seen the highest electricity demand, likely due to extreme summer temperatures increasing cooling loads.
FY2024 and FY2025 both saw their maximum peak loads in September and May respectively -- one due to summer heat and the other potentially due to post-monsoon industrial ramp-up or weather anomalies, said the authors, including the IEEFA's South Asia director, Vibhuti Garg, energy specialists Saloni Sachdeva Michael and Charith Konda, and energy analyst Kaira Rakheja.
They said rising temperatures and extreme weather events are now major drivers of electricity demand, particularly in densely-populated and industrialised areas.
The northern region comprising Uttar Pradesh, Delhi, Punjab, Haryana and Rajasthan accounts for more than 30 per cent of India's peak electricity demand and is especially sensitive to temperature shifts.
Between May 16 and May 20 this year, the power demand in the northern region rose steadily amid widespread heatwaves.
As one of the country's most electrified and densely-populated cities, Delhi's power consumption closely mirrors temperature trends.
Between May 1 and May 16, the national capital's maximum temperature rose from 38.6 degrees Celsius to more than 42 degrees Celsius. During the same period, Delhi's electricity demand climbed from 5,956 MW to 6,789 MW, eventually crossing 8,000 MW in June.
On May 15, the national power demand touched 231 GW at 3 pm, during peak solar-generation hours. The demand had already crossed 222 GW by 11 am and remained high through the day. Between 9 pm and 11 pm, even after sunset, it hovered close to 227 GW.
A similar spike was recorded on April 25, when the national demand hit 235 GW, indicating that extreme weather is increasingly causing multiple demand peaks in a single day.
The authors noted two key takeaways from these patterns. First, the overlap between peak demand and solar generation offers a chance to make better use of solar power, reducing the need for coal during the day.
Second, the high demand after sunset highlights the urgent need for energy storage, demand-side measures and hybrid renewable projects to meet evening electricity needs.
The analysis showed that coal continues to dominate India's electricity generation, accounting for nearly 73 per cent (or 157.6 GW) of the daily supply. It plays a critical role, particularly in the evening when solar availability drops.
Solar energy accounts for around 9.5 per cent of the daily generation, peaking between 10 am and 2 pm. Around noon, the solar output often crosses 60 GW, helping manage high daytime cooling needs.
Wind and hydro power add around 3 per cent and 8 per cent respectively, providing crucial support during morning and evening transitions.
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