India’s Coal Power Generation Falls 3% In 2025 Amid Renewables Surge: CREA

New Delhi, Jan 8 (KNN) India’s coal-fired power generation fell nearly 3 percent in 2025, marking only the second full-year decline in at least five decades, according to the Centre for Research on Energy and Clean Air (CREA). The decrease comes amid record growth in renewable energy, lower electricity demand, and milder weather conditions.

Coal Power Sees Significant Drop

CREA’s 2025 power sector review revealed that coal-based electricity generation fell from 1,322 billion units (BU) in 2024 to 1,283 BU in 2025. This represents the sharpest decline among major power sources. 

Thermal power had grown by 5 percent in 2024, 15 percent in 2023, 10 percent in 2022, and 14 percent in 2021. Despite the decline, coal still accounted for around 70 percent of total electricity generation, underscoring its continued dominance over clean energy sources.

Renewable Energy Drives Growth

Overall power generation rose by about 1 percent, reaching 1,844 BU in 2025. Renewable energy sources, including solar, wind, small hydro, and bio power, registered a surge of over 22 percent, increasing from 221 BU in 2024 to 270 BU in 2025. Nuclear generation declined by 2 percent after a 12 percent growth in 2024.

Slowing Electricity Demand

CREA noted that electricity demand growth has slowed compared with the 2019–24 period. While 2024 saw higher demand due to extreme heat, temperature-adjusted data show that slower growth began in late 2023. 

Heatwaves temporarily boosted air-conditioning load, masking the underlying trend, which became clear once temperatures normalised in 2025.

On June 12, 2025, peak power demand reached 242.5 gigawatts (GW), but only 215.9 GW of thermal capacity was available, with around 26 GW offline for maintenance or outages. The demand was met comfortably through solar, hydro, and other renewable sources.

Implications for Coal Expansion

CREA highlighted that India’s target of 500 GW of non-fossil fuel capacity by 2030 leaves little room for growth in coal-based generation, even if electricity demand rises faster than expected. Adding new coal plants could reduce the utilisation of existing thermal assets.

(KNN Bureau)