India’s Power Output Falls Sharply in October — Biggest Drop Since COVID-19

Post by : Saif Nasser

India’s electricity generation fell sharply in October, marking the steepest drop since the COVID-19 lockdown in 2020. The decline came as heavy rains, weak industrial activity, and lower cooling needs reduced overall demand across the country.

According to data from the federal grid regulator Grid-India, the total electricity generated in October dropped by six percent from a year earlier, reaching 142.45 billion kilowatt-hours. Experts said the unusually wet weather played a major role in this decline.

Bhanu Patni, associate director at India Ratings and Research, said that continued rainfall across most parts of the country compared to last year led to lower power consumption. Another factor was the festive season, which slowed down factory operations and industrial demand. Debabrat Ghosh, head of India operations at Aurora Energy, said many large festivals took place in October, which led to reduced industrial usage.

The broader slowdown in India’s economy has also affected electricity use. Many industries, particularly manufacturing and construction, have been running below capacity due to weaker domestic and global demand. Heavy rainfall during the month further reduced the need for air conditioners and coolers, which normally push up power use.

Coal-based electricity generation, which makes up around three-fourths of India’s total power supply, also saw a sharp decline. Output from coal-fired plants fell by 13.2 percent compared to last year, down to 98.38 billion kilowatt-hours. This was the biggest drop since June 2020, when pandemic lockdowns had halted most industrial activity.

Grid-India data showed that coal-fired generation has fallen in six out of the ten months this year, the highest number of declines in a single year since 2020. The reduced demand for coal power has hit major coal producers, especially Coal India Limited, which supplies about 75 percent of the country’s coal.

Coal India reported its worst profit fall in five years during the quarter ending in September, as electricity demand stayed low. The company’s overall coal production dropped by about ten percent in October, and the amount supplied to power plants fell by six percent.

While coal generation declined, renewable energy output rose strongly. Data showed that solar, wind, and hydroelectric power together produced 19.75 billion kilowatt-hours in October, up 30.2 percent from a year earlier. Analysts said this growth in renewables shows India’s continued progress toward cleaner energy, though coal still remains the country’s main source of power.

Experts believe electricity demand may pick up in the coming months as temperatures rise and industrial work returns to normal after the festival season. However, they warned that unpredictable weather and slower economic growth could continue to affect power generation in the near future.

The October data highlights how closely India’s energy demand is linked to weather and economic activity. It also shows that while the country is making strong progress in renewable energy, coal will still play a key role for several years to ensure stable and reliable power supply across the nation.