Thursday, March 12, 2026

IEEFA: India’s power shortage crisis is an opportunity to spur the clean energy transition

Investing in thermal energy to help India through the power crisis will divert limited financial resources away from cheaper clean energy

Continuing high temperatures in India are creating massive demand for electricity, which distribution companies struggle to meet.
The power shortage crisis has revealed that the cost of coal-based generation is high and inflationary.
The government needs to invest in sustainable energy choices and accelerate the deployment of domestically produced, deflationary renewables.

Heatwaves are sweeping across India. March 2022 was the hottest March since 1901, according to Indian Meteorological Department data. The high temperatures have continued in April and this is adding to the woes of the distribution companies which are trying to meet increasing electricity demand.
India experienced peak demand of 200 gigawatts (GW)

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