As heatwaves grip the country and temperatures edge closer to the 50-degree mark, the hospitality sector finds itself staring at a massive summer electricity bill. A new study by Enlog, a company specialising in AI-driven energy management, estimates that the industry’s power consumption this season could touch 9.35 billion units, up nearly 10% from last summer. At an average tariff of ₹8 per unit, that translates to a spend of over ₹7,400 crore, a steep rise that’s squeezing margins across hotels, hostels, and PGs.
The report reveals that major metros are already experiencing a steep spike in energy demand: Delhi sees the highest amount of electricity consumption at 25–30%, followed by Hyderabad at 20-25%, Mumbai at 15-20% due to high humidity levels, and Bangalore in the range of 10–15% due to its more moderate climate. With temperatures rising year on year, other sectors like telecom data centers, residential and industrial segments are also bracing for extreme temperatures up to 50 degrees. India’s electricity demand is projected to peak at 273 gigawatts (GW) in June 2025. Demand for ACs and coolers is already 25-30% higher as compared to last year’s Feb and March.
“Energy volatility is no longer a seasonal concern; it’s a structural challenge that’s reshaping how the hospitality sector operates. Hotels and PGs are under increasing pressure to maintain guest comfort while navigating volatile energy costs and growing sustainability expectations. This is where AI has moved beyond monitoring to decision-making—automating efficiencies, anticipating demand, and creating resilience. The businesses leaning into this shift aren’t just saving money, they’re building a competitive edge for the future.,” said Bharath Rankawat, Founder, Enlog.
India’s electricity demand is expected to peak at 273 gigawatts (GW) in June 2025, with demand for air conditioners and coolers already 25–30% higher compared to February and March last year. For the hospitality sector alone, this translates to a jump from ₹6,800 crore in energy spend in 2024 to ₹7,416–₹7,480 crore in 2025, at an average tariff of ₹8/unit.
In summer, a 30-room hotel can see bills rise to ₹1.5–3 lakh/month, while a 50-room hotel may pay ₹2.5–5 lakh/month in high-tariff cities like Delhi, Mumbai, and Bangalore. ACs, refrigeration, and water heating drive 60-70% of total hotel energy use, while dependence on diesel generators often drive-up costs by Rs. 50,000/1 Lakh per month.
Similarly, PGs also see a significant rise in energy consumption during the summers, paying an additional 30,000-50,000 in Delhi NCR, with additional fuel costs of 10,000-20,000 to run diesel generators. Invariably, unstable power supply leads to poor tenant experience, higher complaints, and risk of losing residents to better-managed properties.
Enlog’s AI-powered energy optimisation solutions have helped mid-sized hotels reduce their electricity consumption by 20–25%, translating into savings of ₹30,000–₹50,000 per month. For PG accommodations, savings average around 23%, or approximately ₹10,000–₹15,000 monthly. To date, Enlog has managed over 20,000 MWh of electricity across a growing client base of 1,580+ PGs and 200+ hotels, contributing to a reduction of nearly 4000 tons of carbon emissions.
The platform goes beyond basic monitoring by offering real-time analytics to spot inefficiencies and eliminate energy wastage before it impacts operations. Its intelligent generator management system also helps minimise energy usage while using generators that helps in cutting fuel costs, reducing emissions, and ensuring a smoother, uninterrupted experience for guests and residents alike. The result: fewer complaints, better reviews, and stronger operational reliability for hospitality businesses.
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