Renewables
Coal retains dominance in India despite renewable growth
India's electricity generation increased during the second quarter of the 2026/27 financial year, driven by higher demand and expanding renewable capacity.
Key points
- Coal and lignite powered approximately 66% of total electricity generation.
- Solar generation registered a significant year-on-year increase of 39%.
- Peak electricity demand reached 270 GW in July 2026.
What happened
Electricity generation across India grew by 11% during the second quarter of the 2026/27 financial year, according to data from the Centre for Research on Energy and Clean Air (CREA). Fossil fuels remained the primary source of power, with coal and lignite responsible for about 66% of the national total. This output represented a 12.5% rise compared to the equivalent period in the previous year.
At the same time, non-fossil generation reached historic levels. Solar output climbed by 39% from the previous year, and wind generation expanded by 29%. On 30 September, solar production hit a daily peak of 705 MU. New capacity additions during the period were dominated by renewables, which added 7 GW compared to 0.8 GW of thermal capacity.
Why it matters
Surging consumption placed pressure on fuel supplies. Peak national demand hit 270 GW on 16 July, surpassing the 230 GW maximum recorded during the 2025/26 comparative period. Uttar Pradesh and Maharashtra experienced the highest regional demand at 27 GW each.
By the beginning of October, 85 power stations held coal reserves below 25% of required normative levels. Total installed capacity reached 555 GW by August 2026, with non-fossil sources making up 55% of that figure. Battery storage capacity reached 9.1 GWh operational capacity to help manage peak demand periods.
What comes next
Grid limitations continue to restrict the full integration of variable renewable electricity. Additional battery storage units totaling 3 GWh are scheduled for deployment by December 2026. Meanwhile, infrastructure development proceeds on 44 GW of coal-fired projects, though the majority of those installations remain below the halfway completion mark.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
19.1% of electricity in India was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
