Electricity output from dams declined nearly 7% in the quarter ended June, while coal, nuclear, and renewable facilities generated more to meet the record demand driven by extreme heat.

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H.VIBHU

India’s hydropower generation plunged by more than a fifth in June after El Niño-linked dry weather depleted reservoir levels, piling pressure on the grid during the peak summer demand season.Generation from hydroelectric plants fell almost 21% from a year earlier, the steepest drop since February 2024, data from power ministry showed. Electricity output from dams declined nearly 7% in the quarter ended June, while coal, nuclear, and renewable facilities generated more to meet the record demand driven by extreme heat.Cumulative monsoon rainfall across India was 38% below normal this year through July 1, according to the India Meteorological Department, largely due to the emergence of an El Niño weather pattern in the Pacific Ocean affecting the monsoon rainy season that runs from June to September. The unusually dry weather constrained generation from hydro plants, while also affecting irrigation during the crucial crop sowing phase.Reservoirs monitored by the Central Water Commission held 47.7 billion cubic meters of water as of July 2, barely a quarter of their total capacity. Stored volumes across the 166 reservoirs tracked by the agency were 39% lower than a year earlier.The levels may improve as monsoon rains advance across more parts of the country, replenishing reservoirs and leading to cooler weather that reduces electricity demand. Rainfall has already picked up in recent days with overall precipitation now 20% less than normal. IMD expects July precipitation to be just below 94% of the long-term average.Meanwhile, peak electricity demand in the country has remained under 250 gigawatts so far in July, compared with a peak of 265.2 gigawatts in June and a record 270.8 gigawatts in May. Power supplies have met requirements on most days this month, data from Grid Controller of India show.More stories like this are available on bloomberg.comPublished on July 8, 2026