Why India's electricity prices fell in August
August 2025 saw electricity prices drop across India, thanks to heavy monsoon rains boosting supply and cooler weather cutting demand.
Day-ahead market rates fell 11% to ₹4.17 per unit, and real-time prices slipped 6% to ₹3.57.
Peak summer demand this year at 241 GW
Hydropower got a boost from the strong monsoon, plus solar capacity grew—so sell bids jumped 51%, easily outnumbering purchase bids.
Meanwhile, peak summer demand hit 241 GW, lower than last year's high of 250 GW and below forecasts.
Demand dropped by about 1.5% last quarter
With an early monsoon and milder temps, people used less electricity for cooling—demand dropped by about 1.5% compared to last year (April-June).
This let many switch from expensive power to cheaper exchange deals.
What to expect next?
Demand started picking up again in August and is expected to rise through October as things stabilize.
Renewables like solar and wind are also playing a bigger role in keeping prices competitive for everyone.