New Delhi, Jan. 7 -- India's power sector is expected to see a year of recovery without a sharp rebound in demand, according to a report on India Power Outlook 2026 by Bernstein.

Power demand declined by around 0.7 per cent in FY26 till December, after registering strong growth of 7 per cent and 5 per cent in the previous two years. The report expects demand to recover to around 5 per cent growth in the coming year, aided by a supportive base from May onwards, although weather conditions are not expected to be particularly favourable.

On the supply side, India added a record 41 GW of power capacity in FY26 till November, and total additions for the fiscal year are expected to reach around 55 GW. This includes approximately 42 GW of rene...