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India Power Supplies Strain as Gas Output Drops During Heatwave, Bloomberg Analysis Says

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India's gas-based electricity generation dropped to a multi-year low as power demand climbed to a record 270.8 gigawatts during the summer heatwave, according to Bloomberg analysis on Monday.

A sharp rise in temperatures lifted electricity use across India for four straight days last week as households increased use of air conditioners and other cooling appliances.

Utilities managed daytime demand with strong solar generation, but power supplies tightened after sunset when solar output faded.

Between April and May 21, gas-fired plants produced about 3.6 billion kilowatt-hours of electricity, the lowest level in at least six years, down about one-third from last year and almost half of 2024 levels, according to the analysis, citing power ministry data.

Blockades tied to the Iran conflict disrupted shipments through the Strait of Hormuz, which handles about 20% of global liquefied natural gas supply, sharply reducing India's imports from Qatar and the UAE.

Power producers purchased imported fuel through the Indian Gas Exchange to cover evening demand, but electricity generation from gas plants still remained weak.

Grid failures and electricity shortages triggered blackouts in regions including the Indian capital, New Delhi, and the states of Uttar Pradesh and Tamil Nadu, as businesses and households struggled with extreme heat.

Although gas-fired plants represent only a small share of India's electricity supply, utilities rely heavily on them during hot summer nights when solar generation shuts down.

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