India’s Coal Power Output Falls at Fastest Pace in 5 Years Amid Renewable Surges

In May 2025, there was the biggest drop in coal-fired power output. Data from the government indicates that the decline was roughly 6.5% year over year. The decline ran counter to rising clean energy adoption, renewable energy generation, and warmer temperatures.

Renewables Gain Ground in India’s Power Mix

May 2025 recorded a shift from the pattern, as renewable energies such as Solar and Hydro power were being used more than coal, due to which the dependency was reduced which is typically three-fourths of annual power generation.

The solar generation rose because of the favorable weather and hydropower rose because of the early onset of monsoon in the year, which helped in increasing the reservoir levels across different regions of the country.

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Moderate Weather and Demand Patterns Contribute

The dip in coal power use was also attributed to below-normal temperatures in several parts of India during May. This reduced the usual summer surge in electricity consumption, especially those brought on by air conditioners and cooling systems.

The pressure on coal-based plants was lessened as a result of the decreased demand for coal-fired generation during the summer peak compared to prior years.

Climate Goals and Policy Push Driving Change

With an aim to have 50% of its power generation from non-fossil sources by 2030, India has been trying to rely more on the non-fossil sources, including sun, water, and air. The country’s plans are backed by international climate goals.

Looking Ahead: Will the Trend Hold?

The experts have stated that the decline is seasonal and short-term. The power demands might rise as the industry grows, and as the power demand might grow, it can directly impact the demand for coal as well. It is stated that the trajectory of how India turns to renewable-only country will be very long term.