Centre for Research on Energy and Clean Air reports India's coal power growth stalls amid clean energy boom
Summary
India's coal power generation has experienced no growth between the first half of 2024 and the first half of 2026, marking the first such stagnation in over 50 years, according to an analysis by the Centre for Research on Energy and Clean Air (CREA). This period coincided with the largest increase in non-fossil power generation on record in India, despite overall electricity demand rising. While the clean energy boom has led to significant renewable capacity additions, coal remains critical to India's electricity system, constituting about two-thirds of total power output, as authorities balance the need for a reliable power supply during peak demand periods with ongoing investments in fossil fuel infrastructure.
Analysis
India: India is a major South Asian economy and global energy consumer. Its power sector has seen a notable expansion in non-fossil generation in recent years, contributing to a period of flat coal power output even amid rising overall electricity demand. This development highlights the country's balancing act between clean energy growth and continued reliance on coal for baseload power. Lauri Myllyvirta: Lauri Myllyvirta serves as lead analyst at the Centre for Research on Energy and Clean Air. He authored the analysis detailing India's record non-fossil power growth and its impact on coal generation trends. His expertise focuses on energy transitions and emissions in major developing economies. Centre for Research on Energy and Clean Air: The Centre for Research on Energy and Clean Air (CREA) is an independent research organization specializing in energy policy, air quality, and emissions analysis. It produced the recent study examining India's power generation trends from 2024 through 2026. The organization's work directly informs understanding of how clean energy additions are affecting traditional fossil fuel use in key markets. Policy Approach: Authorities emphasize sustainable coal utilization alongside renewable growth to ensure reliable power supply during peak demand periods such as heat waves. Fossil Fuel Role: Coal continues to serve as a foundational element of India's electricity system, with ongoing capacity additions and long-term strategic importance noted by government advisers. Energy Transition: India's clean energy expansion has produced the largest recorded increase in non-fossil power generation over a two-year span.
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macropolitics