India’s coal-fired electricity generation rose to its highest level since November 2023 in June 2026 as an extended heatwave and below-normal monsoon rainfall drove a sharp increase in power demand across the country.
Coal-based power generation increased nearly 14% year-on-year to 120.2 billion kilowatt-hours (kWh) in June, while total electricity generation rose 10.4% to 178.31 billion kWh, according to government data analysed by Reuters.
The surge reflected India’s continued dependence on coal to meet rising electricity demand during prolonged periods of extreme heat, India Today reported.
The increase came as India recorded its fifth-driest June since records began in 1901, according to the India Meteorological Department (IMD). A strong El Niño pattern delayed the progress of the southwest monsoon in several parts of the country, extending high temperatures and increasing the use of cooling appliances in homes and businesses.
The delayed rains kept electricity demand elevated, with coal-fired power stations supplying much of the additional power required.
Coal Continues to Anchor Power Supply
Coal remains the backbone of India’s electricity sector because it provides round-the-clock power generation.
Although solar and wind capacity has expanded rapidly, solar power generation falls after sunset and battery storage capacity remains limited. As a result, coal-fired plants continued to meet much of the evening peak electricity demand in June.
Renewable energy accounted for a record 19% of India’s electricity generation during the month, with output rising 23% year-on-year to 33.81 billion kWh. However, renewable generation was not sufficient to replace coal during periods of peak demand.
Weak Monsoon Reduces Hydropower Output
The delayed and below-average monsoon also affected hydropower generation by reducing water levels in reservoirs.
Hydropower generation fell 24.4% from a year earlier to 14 billion kWh in June, marking its sharpest decline since February 2024.
Electricity generation from natural gas also declined 30.1% during the month.
Energy analysts expect coal to remain India’s primary source of electricity in the near term as power demand continues to grow.
According to Reuters, Ankit Jain said thermal power generation is likely to increase further during the current financial year to meet rising electricity demand during peak consumption periods, despite continued growth in renewable energy capacity.
