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Weak Monsoon Plunges India into Decade-High September Power Deficit
M
Moneycontrol•01-10-2026, 16:07
Weak Monsoon Plunges India into Decade-High September Power Deficit
- •India's electricity deficit in September reached its highest in nearly a decade due to weak monsoon rains depleting hydropower reservoirs and hot weather increasing demand.
- •Daily peak shortfalls during evening hours exceeded 2 gigawatts for over half the month, occasionally surpassing 6 gigawatts, with the combined energy shortage being the worst for September since 2017.
- •Below-normal rains, the weakest monsoon since 2015, led to a 16% decline in hydropower generation for September and kept power demand elevated since March.
- •Uneven rain distribution flooded coal-mining regions, restricting output and transport, causing coal inventories at power stations to drop to nearly three-year lows, with many having less than a quarter of required stockpiles.
- •The supply crunch is expected to benefit Coal India Ltd., with spot sales premiums already seeing an uptick, and ongoing disruptions could further boost auction sales premiums.
Key Questions Answered
Weak monsoon rains depleted hydropower reservoirs and hot weather stretched the country's grid, leading to the highest September electricity deficit in nearly a decade.
Hydropower generation for September declined nearly 16% from a year earlier, marking the fifth consecutive fall in monthly output.
Coal inventories at power stations slid to the lowest level in nearly three years, with daily reserves more than halving from a year ago and about 40% of surveyed plants holding less than a quarter of required stockpiles.
