India’s FY27 Power Demand Growth Forecast Raised To 9% As Power Generation Surges: Jefferies

India's FY27 Power Demand Growth Forecast Raised To 9% As Power Generation Surges: Jefferies (REUTERS/Amit Dave)

India's power demand growth forecast for FY27 has been raised to 9 percent from 7 percent earlier, as electricity generation surged amid rising consumption, with Jefferies warning that tight coal stocks at thermal plants could add pressure on supply.

In its report, the brokerage firm said power generation in October 2026 was up 24 percent year-on-year month-to-date, marking the strongest monthly trend in 15 years, barring the post-COVID year of 2021. Power demand had already grown by more than 10 percent year-on-year so far in the financial year.

"We raise our FY27E demand estimate to 9 percent vs 7 percent earlier as YTD it is up 10 percent+ YoY," the report stated. Jefferies also projected power demand to rise 6 percent in FY28, with further upside possible if El Niño conditions recur in 2027. The report stated, "above normal temperatures and continued rising demand could drive better utilisation levels in thermal and RE ahead."

The increase in demand has pushed thermal power plant utilisation to 68 percent in FY27 so far, compared with 62 percent in the year-ago period. However, coal stocks at thermal…

Original source: https://www.timesnownews.com/business-economy