India's Coal-Fired Power Output Climbs to Highest Level Since November 2023

Post by : Saif

India's coal-fired electricity generation surged to its highest level since November 2023 during June 2026, driven by soaring power demand caused by an extended heatwave and below-average monsoon rainfall, according to government data.

The sharp increase highlights India's continued dependence on coal to meet rising electricity consumption, particularly during periods of extreme weather when cooling demand rises significantly.

Electricity Generation Records Strong Growth

Data from Grid-India, the country's federal power grid operator, showed that total electricity generation reached 178.31 billion kilowatt-hours (kWh) in June.

This represents a 10.4% increase compared with the same month last year.

The rise reflects growing electricity consumption across households, businesses, and industries as temperatures remained unusually high across many parts of the country.

Coal Power Generation Jumps 14%

Coal-fired power plants generated 120.20 billion kWh of electricity during June, marking a 14% year-on-year increase.

It was the highest monthly coal-based electricity generation recorded since November 2023.

Coal continued to remain the backbone of India's electricity supply as demand surged during peak evening hours.

Heatwave and Weak Monsoon Increased Power Demand

The increase in coal generation was largely driven by:

• Prolonged heatwave conditions across several states.
• Higher use of air conditioners and cooling appliances.
• Below-normal monsoon rainfall during June.
• Increased evening electricity demand.

According to weather data, India recorded its fifth-driest June since 1901, with the country experiencing significantly below-average rainfall.

The dry conditions were linked to the influence of El Niño, a climate pattern associated with warmer Pacific Ocean temperatures that often brings hotter and drier weather to South Asia.

Renewable Energy Reaches Record Share

Despite the increase in coal use, renewable energy also achieved a significant milestone.

Renewable sources accounted for a record 19% of India's total electricity generation during June.

Renewable power production rose 23% year-on-year to 33.81 billion kWh, reflecting continued additions in solar and wind generation capacity.

However, experts note that renewable energy alone cannot yet fully meet demand during evening peak hours because of limited battery storage capacity.

Hydropower and Natural Gas Output Decline

While coal and renewable energy generation increased, other power sources recorded declines.

Hydropower generation fell 24.4% from a year earlier to 14 billion kWh, marking its steepest decline since February 2024.

Lower rainfall reduced water availability for hydroelectric projects.

Natural gas-based electricity generation also declined sharply, falling 30.1% compared with June last year.

Experts Expect Continued Dependence on Thermal Power

Industry experts believe thermal power generation could remain elevated throughout the current financial year if electricity demand continues to rise.

According to analysts, although India is rapidly expanding renewable energy capacity, coal-fired power plants remain essential for maintaining grid stability during periods of peak demand.

Growing electricity consumption, combined with weather-related challenges and storage limitations for renewable energy, is expected to keep coal as a major source of power in the near term.

Interestingly, coal-fired electricity generation had declined in 2025, marking the first annual drop since the COVID-19 lockdowns in 2020. However, the strong rebound in June indicates coal continues to play a critical role in meeting India's energy needs.

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