By Team Newscript
- Power Demand and Monsoon Slowdown
India’s electricity demand softened in the first quarter of FY26 as an early monsoon tempered consumption across industrial and residential sectors. Major private utilities — Tata Power, Adani Power, and JSW Energy — reported declines of 1.3–1.6% in Q1 demand, a reversal from the 11% surge seen in the same quarter last year. The slowdown comes after two consecutive years of above-average growth, driven by post-pandemic recovery and prolonged summer heatwaves. Analysts say the early onset of monsoon rains in June cooled peak-hour loads and reduced air-conditioning demand. While the short-term dip eases strain on the grid, utilities warn that reduced dispatch volumes could compress margins. Demand is expected to recover in Q3 as agricultural pumping picks up post-monsoon and industrial activity resumes after the festive season.
- Russian Oil Dependency Under Review
India’s refiners remain alert to potential disruptions in Russian crude supplies as geopolitical tensions deepen. Hindustan Petroleum Corp. Ltd. disclosed that Russian grades accounted for 13.2% of its Q2 crude basket, down from last year’s highs, signalling a diversification strategy. State refiners have not received formal government directives to curb Russian imports, but traders report increased spot purchases from the Middle East and West Africa. Discounted Urals crude has been a cost advantage for Indian refiners since early 2022, but sanctions-linked shipping constraints and tighter Western scrutiny are raising operational risks. Analysts warn that a sharp disruption could raise India’s crude import bill by $4–5bn annually.
- Ethanol and SAF Push Ahead
India has achieved nationwide E20 (20% ethanol blend) petrol rollout ahead of its 2025 target, marking a milestone in its biofuel strategy. The government is now exploring higher ethanol blend levels and is pressing for sustainable aviation fuel (SAF) adoption, with talks underway with major airlines and refinery operators. Policymakers see biofuels as key to cutting oil import dependence, stabilising rural sugar markets, and lowering emissions from the transport sector. Industry players, however, warn that feedstock availability and infrastructure upgrades will determine the pace of scale-up.
- NTPC’s ₹80,000cr Renewable Expansion
State-run NTPC Ltd. will invest ₹80,000 crore in Telangana to develop a mix of solar, wind, and hybrid renewable projects, as part of its goal to achieve 60GW of renewable capacity by 2032. The projects, spread over multiple sites, are expected to create thousands of jobs during construction and contribute significantly to the state’s green power ambitions. NTPC is also exploring battery storage integration to provide firm, dispatchable power for industrial clusters.
- Nuclear Power Capacity Target
India aims to raise its nuclear power capacity to 22GW by 2032, up from the current 7.5GW. The expansion is intended to diversify the clean energy mix and provide stable baseload generation to complement variable renewables. The Department of Atomic Energy is prioritising indigenous reactor designs alongside international collaborations. Cost and public acceptance remain hurdles, with recent policy moves aimed at easing land acquisition and regulatory clearances.
- Energy Storage Drive
India has floated tenders for 171GWh of energy storage capacity, with more than 55GWh announced in H1 2025 alone. This follows surging interest from utilities and renewable developers in 24/7 clean power. Globally, however, energy storage investment is showing signs of caution — funding fell 41% to $9.1bn in H1 2025, according to industry trackers, amid rising borrowing costs and supply chain delays.
- Green Ammonia Cost Competitiveness
India has posted record-low tariffs for green ammonia, signalling strong competitiveness in the emerging hydrogen economy. The tariffs are attracting interest from export markets in Japan, South Korea, and the EU, with Indian developers positioning for large-scale supply contracts.
- LPG Subsidies for PMUY
The Union Cabinet has approved ₹12,000 crore in LPG subsidies for over 10 crore Pradhan Mantri Ujjwala Yojana beneficiaries in FY26, extending financial support for low-income households and aiming to curb the use of polluting cooking fuels.
- Petrol Pump Licensing & Non-Russian Crude Buys
Fuel retail norms are being eased to attract more players into the downstream market. Meanwhile, Indian Oil and BPCL have purchased 22 million barrels of non-Russian crude for September–October delivery, underscoring diversification in sourcing.
- Global Oil Price Slump
Crude prices fell for a second week, extending last week’s 4% drop, as traders assessed the impact of new US tariffs on key trading partners and awaited a US–Russia meeting. US oil and gas rig counts have declined for three consecutive weeks, indicating a slowdown in upstream drilling.
- Adani Power’s Bihar Project
Adani Power has secured approvals for a $3bn (₹25,000 crore) 2.4GW coal-fired plant in Bihar, aimed at meeting regional baseload demand. The project is expected to boost employment and improve grid reliability in eastern India.
- Coal India’s Record Output
Coal India Ltd. produced 781 million tonnes in FY24–25, its highest-ever annual output, reflecting sustained demand from power and industrial consumers despite the renewables push.
- Global Renewable Cost Gains
Advances in battery storage have reduced the levelized cost of electricity for 24/7 solar in sunny regions to $104/MWh, down 22% year-on-year, making it cheaper than coal and nuclear in several markets.
- LNG & Hydrogen Bets
Namibia and Nigeria are accelerating investments in LNG and green hydrogen, targeting export markets in Europe and Asia. Both countries see these sectors as long-term growth engines amid the global shift from oil.
- International Project Updates
Israel signed a $35bn natural gas export deal with Egypt. Germany’s Uniper will invest €5bn in renewables by 2030. The US has withdrawn approval for the 1GW Lava Ridge wind project in Idaho. Côte d’Ivoire has awarded 160MW of solar PV contracts, and the Philippines approved a 2GW offshore wind project.