Energy Stocks Surge Up to 19% Led by NTPC Green Energy: Key Reasons Explained

The surge came even as the benchmark indices continued to trade under pressure due to rising crude oil prices and escalating tensions in West Asia. Despite the negative sentiment in equities, buying interest in power generation and renewable energy companies helped the sector outperform.

Sharp gains across power and renewable energy companies

The share price of NTPC Green Energy was traded at an intraday high of ₹103.2, up around 19% during the day.

Other major power companies also recorded strong gains. Shares of JSW Energy surged about 8.32% to around ₹528, while Adani Power advanced nearly 9.46%.

Meanwhile, stocks such as Tata Power and CESC Limited rose up to 7% each during the session.

Several renewable and power generation counters were also trading higher, including KPI Green Energy Ltd, NTPC Ltd, NLC India Ltd, KP Energy Ltd, and Adani Green Energy Ltd.

Among these, KPI Green Energy Ltd surged 18.59%, while NLC India Ltd gained 9.24% and KP Energy Ltd climbed 19.25%.

Other companies such as ACME Solar Holdings Ltd, Gujarat Industries Power Company Ltd, Clean Max Enviro Energy Solutions Ltd, NHPC Ltd, SJVN Ltd, GMR Power and Urban Infra Ltd, and Inox Green Energy Services Ltd also traded in the green.

Key Reasons Behind the Surge of Energy Stocks

Early summer drives electricity demand

One of the key reasons behind the rally is the early onset of summer in India, which has significantly increased electricity demand across the country. Rising temperatures typically lead to higher usage of cooling appliances such as air conditioners and refrigerators, pushing up overall power consumption.

In addition to seasonal demand, there has also been a surprise surge in the use of electric cookware and battery infrastructure due to the ongoing LPG crisis triggered by the war in West Asia. This shift from gas-based cooking to electric appliances has further boosted power consumption.

LPG shortage may shift consumption to electricity

Supply concerns around LPG could lead to a shift in energy usage patterns. As a result, power companies and solar-related firms could see increased activity and investor interest.

Strong power demand outlook supports the sector

India’s electricity demand outlook also remains supportive for power generation companies.

According to the Coal Ministry, the country currently has coal stocks of about 210 million tonnes, which are sufficient to meet demand for 88 days.

Power demand had remained relatively subdued earlier due to persistent rains followed by winter, with demand reaching 245 GW in the current financial year, compared to the earlier projected 270 GW. However, demand is now expected to pick up with the start of summer.

Higher utilisation in thermal power plants

Thermal power plants are currently operating at much higher capacity utilisation levels compared to renewable sources.

The Plant Load Factor (PLF) for thermal power plants is above 70%, significantly higher than the around 25% PLF for solar and wind installations. This indicates that thermal plants are playing a crucial role in meeting peak power demand.

Power sector rally despite weak market sentiment

The surge in power stocks comes even as the broader market remains under pressure. Indian equity benchmarks continued to fall sharply during Thursday’s trade due to a spike in crude oil prices amid renewed escalation in the West Asia conflict, which weighed on overall investor sentiment.

Despite this weakness, the power sector has emerged as one of the strongest-performing segments of the market, where the Nifty Energy index jumped by 2.4% to the day’s high, driven by rising electricity demand, a favourable sector outlook, and growing investor interest in renewable energy companies.