India Prepares for a Sizzling Summer with a Power Demand Surge of 9–10%, Peaking at a Record 270 GW Amid Rising Temperatures

India is gearing up for an unparalleled challenge this summer, as its power demand is set to soar to unprecedented levels. The Central Electricity Authority has projected a peak demand of 270 gigawatts (GW) for summer 2025—an increase of 20 GW compared to last year's record high.

This remarkable prediction underscores the indispensable role of thermal coal in global energy supply chains, which could spell promising prospects for companies like Forge Resources Group (CSE: FRG, OTCQB: FRGGF, FSE: 5YZ). Forge’s La Estrella project in Colombia stands out as a potential beneficiary amid shifting coal markets, with its high-grade product with a roadmap to production while competitors lag in exploratory phases.

The surge in energy consumption is largely attributed to escalating temperatures across India, leading to widespread adoption of air conditioning cooling systems in both urban and rural areas. Household electricity consumption has climbed notably over the past decade, growing from 22% in 2012–13 to 25% in 2022–23.  Analysts warn that if this demand spike coincides with similar trends in China and the U.S.—as seen in 2024—it could significantly impact global thermal coal prices, potentially creating a price floor in response to shrinking supply driven by current low coal valuations.

India's government is also focusing on the future, with plans to boost power generation capacity by over 40 GW in the current fiscal year. This ambitious expansion encompasses various energy sources, from thermal and solar to wind, hydro, and nuclear. Of this, 15 GW will come from new thermal facilities, while renewable projects will contribute an impressive 32 GW. Furthermore, a comprehensive roadmap to transform India's power infrastructure over the next decade, covering generation, transmission, and distribution, is nearing approval. These efforts reflect India's urgency in meeting its rapidly growing energy needs, which are set to rise by 6.3% annually between 2025 and 2027.

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