November power output fell 1%, marking second consecutive monthly decline.
Coal generation dropped 5.8%, while renewable energy surged 24% annually.
Future demand expected to rise via EVs, green hydrogen, data centers.
India's power output decreased for a second consecutive month in November due to temperate weather and a slowdown in industrial activity, reported Reuters.
Total electricity generation in November fell about 1% year-on-year to 134.26bn kilowatt-hours (kWh), Reuters calculations based on daily data from federal grid regulator Grid-India showed, following a 6% annual drop in October.
1 December 2025
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India's manufacturing sector lost some momentum in November with growth decelerating to the slowest pace in nine months as steep US tariffs took a heavy toll on demand.
In addition, this was the first time in at least five years that power demand had decreased in November. Analysts told Reuters that demand typically increases in the second half of the year as industrial and agricultural activity recovers following the monsoon season.
Clean Energy Expected to Rise
Based on a Reuters report, the total coal-based electricity production declined repeatedly this year as milder seasonal demand and slower industrial activity cooled demand growth.
Meanwhile, capacity additions in solar and wind remain strong and analysts argue that growing adoption of renewables—along with rising segments like electric vehicles and data-centre demand—could lift electricity demand in coming years, according to Business Standard.
According to ICRA’s report, India’s energy demand is expected to grow in the range of 6—6.5% over the next five years.
ICRA said that the growth in demand is attributable to the growing adoption of electric vehicles and green hydrogen segments, as well as the expansion of data centres, which will require sizeable amounts of electricity to power their servers.
“Over the next five years, ICRA expects the electricity demand to achieve a CAGR (compound annual growth rate) of 6—6.5%, driven by the demand from rising adoption of electric vehicles (EVs), green hydrogen (GH) and the increase in data centre capacity,” said Vikram V, Vice President & Co-group head (corporate ratings) at ICRA in a webinar, reported Business Standard, adding that these three segments are expected to contribute to 20–25 % of the incremental demand over the next five-year period from FY26 to FY30.
