India's Power Demand to Surge in CY26 After Monsoon-Hit CY25: SBI CAPS Report

• India's electricity demand is projected to rebound strongly in CY26 following a subdued CY25, as per an SBI CAPS report.
• CY25 saw only 1% demand growth (vs 5% in CY24) due to prolonged monsoons, reduced cooling needs, and base effects.
• CY26 recovery is anticipated from favorable base effects, expected normal weather leading to higher cooling demand, and new drivers like EVs, data centers.
• Record 40 GW solar capacity added in CY25, but operational challenges and monsoon-induced low CUF (16.5%) affected generation.
• Energy storage pipeline is strong, with falling BESS tariffs and significant operational capacity expected in CY26 to aid solar utilization.

Why It Matters: India's electricity demand, subdued in CY25 due to monsoons, is set for a strong recovery in CY26, supported by weather and new drivers.