India’s peak power demand grew 9% YoY in Aug’23 and peak deficit touched a new high of 9GW, i.e. 4% in 5MFY24 (vs 4% in FY23). Note that the growth print for last three years – FY21, FY22 and FY23 – was 4%, 7% and 6% respectively. Hitherto, peak deficit was close to nil. We believe the situation has turned adverse because of inadequate firm capacity addition.