Power stocks gain charge as record demand boosts earnings outlook (opens original article in a new tab)

India's power demand surged due to warmer weather and delayed monsoons, boosting earnings outlook for power companies as thermal plant utilization and spot market prices rose, while renewable energy growth creates storage opportunities.

• India's power demand rose 11.6% year-on-year in May, with peak demand reaching 270 GW
• Thermal power plant load factors increased to 71.5% in May, with NTPC and Tata Power seeing higher utilization
• Renewable energy generation grew 20% in May, driven by capacity additions and summer heat
• Spot market prices for electricity rose 21% to ₹4.2 per unit, creating arbitrage opportunities for storage companies
• BSE Utilities index gained 13% from March low, outperforming Sensex by 8%
• Adani Green Energy and Acme Solar saw significant stock price increases