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Market Chatter: India's Sweltering Nights Expose Growing Power Shortage

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India's growing appetite for air conditioning at night is driving up electricity demand, putting pressure on the country's power system as it expands its reliance on renewable energy, the Financial Times reported on Monday.

Summer night-time temperatures in India have risen about twice as fast as daytime temperatures, the report said, citing the International Energy Agency. Temperatures can approach 30 degrees Celsius across the country, prompting households to keep air conditioners running longer into the night.

Peak electricity demand at night has climbed about 40% since 2019 to 252 gigawatts. Air conditioning can account for as much as a third of that demand. Residential air conditioning uses about 1,500 terawatt-hours of electricity a year, about three times the 500 TWh consumed by data centers, according to the IEA.

Ministry of New and Renewable Energy did not immediately respond to' request for a comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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