India Renewable Power Output Jumps, Coal Use Falls in First Half

India saw a surprise surge in its renewable power output, accompanied by a decline in coal consumption for electricity generation in the first half of the year, according to a Reuters analysis of government data.

Renewable power output in the country jumped 24.4% to 134.43 billion kilowatt hours (kWh) for January–June 2025, according to a Reuters analysis of daily load despatch data from the federal grid regulator.

That was the fastest pace of growth in India’s renewable power output since 2022.

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The share of renewables, excluding hydropower, in India’s energy mix hit a record high of more than 17% in June.

Meanwhile, coal-fired power generation, still India’s dominant electricity source, fell nearly 3% in the first half. Electricity output grew 5.8% in 2024.

A milder summer, due to an earlier-than-expected monsoon, and slowing economic activity have reduced coal demand, resulting in record domestic stockpiles and lower imports by the world’s second-largest consumer of the fossil fuel.

Surging electricity output from solar farms has also played a significant role in cutting India’s coal use so far this year.

Last month, Reuters reported that India saw a record 32.4% jump in solar generation during January to April from the same period in 2024. Its electricity generation from solar farms was a record 57.8 terawatt hours (TWh) during January to April, according to energy research group Ember.

The country is effectively on track for a potential drop in annual coal-fired power output by the end of the year.

Breaking out of a slowdown

Analysts and Indian officials say the country’s renewable generation will continue to grow through the year and ahead.

India is expected to add 32 gigawatts (GW) of renewable capacity this year, compared with about 28 GW in 2024, said Vikram V, vice president of corporate ratings at Moody’s unit ICRA.

The South Asian nation has already added 16.3 GW of wind and solar capacity in the five months through May, government data showed.

The jump in wind and solar additions comes after a prolonged slowdown that led India to miss its 2022 target of 175 GW. It now aims for 500 GW of non-fossil fuel capacity – including hydro and nuclear – by 2030, nearly double the current 235.6 GW.

“We believe this is achievable, but in our base case, the target may shift to 2032,” S&P Global Commodity Insights said in a note, adding that grid modernisation and energy storage investments are critical to support renewable integration.

India’s renewables sector has been grappling with several obstacles, including weak demand for tenders, land acquisition challenges, delays in power purchase agreements and project cancellations.

The issues have persisted despite the country’s Narendra Modi-led government setting up several state-backed projects and incentives to drive renewables growth.

• Reuters, with additional editing and inputs from Vishakha Saxena

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