India is easing coal production as cleaner energy sources take the lead and power demand cools off. With nearly 100 million tonnes of coal already lying unused at pitheads and stockpiles sufficient for over 21 days at thermal power plants, the country is rebalancing its energy mix toward renewables. Daily coal use for power generation now stands at around 2.05 million tonnes.

Peak power demand this year has also remained below expectations, hovering between 240 GW and 245 GW. This is compared to earlier projections of 277 GW. Extended rainfall and growing renewable output have helped keep temperatures — and electricity demand — in check.

India’s broader transition away from fossil fuels continues to gain momentum. In July, the country crossed a major milestone, with 50% of its installed electricity capacity now coming from non-fossil-fuel sources. This occurred five years ahead of schedule under its Paris Agreement commitments. Renewable energy capacity has surged from under 35 GW in 2014 to over 197 GW (excluding large hydro) as of October 2025.

As of FY2025-26, India has 169.40 GW of renewable projects under construction. There is another 65.06 GW tendered, including advanced systems like hybrid, round-the-clock, and thermal-renewable bundling projects.

Key upcoming growth drivers include large hybrid and RTC projects in Rajasthan, Gujarat, and Karnataka. Offshore wind and pumped hydro storage projects; rural-focused solar initiatives under PM Suryaghar and PM-KUSUM are also pivotal. The National Green Hydrogen Mission for industrial decarbonisation and the Green Energy Corridor Phase III will enhance RE integration.

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