Power demand may rise 4%: IEA

New Delhi: India’s electricity demand is expected to grow by a moderate four per cent in 2025, after cooler summer temperatures in the first half of the year reduced consumption and shifted peak load to September, the International Energy Agency (IEA) said. In its mid-year update on electricity, IEA said while global power demand is rising much faster than the forecast for the 2025-2026 period than it did during the past decade, electricity demand in China and India is expected to rise at a more moderate pace in 2025 than the rapid growth seen in 2024.

“After 6 per cent growth in 2024, electricity demand in India is forecast to rise by 4 per cent this year,” it said. IEA projected Chinese consumption to rise 5 per cent in 2025, down from 7 per cent in the previous year. However, China alone will account for 50 per cent of global electricity demand growth, as it did in 2024.

“In India, the impact of global economic uncertainties on industrial activity and cooler summer temperatures compared to 2024 led to electricity demand increasing by 1.4 per cent year-on-year in H1/2025.