Coal Generation Stagnates Amidst Record Clean Energy Growth
India’s power sector has undergone a structural shift, with coal-fired generation recording no growth over the past two years. According to a new analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief, this marks the first time in more than five decades that coal output has failed to expand, even as overall electricity demand rose.
Between the first half of 2024 and the first half of 2026, India’s electricity generation increased by 7%, equivalent to approximately 63 terawatt-hours (TWh). The CREA report, released on September 17, confirms that this entire increase was met by non-fossil sources. This represents the largest increase in non-fossil power generation over a two-year period recorded in the country.
Solar Leads the Clean Energy Surge
The primary driver of this shift is the rapid expansion of solar capacity. CREA data indicates that India added around 77 GW of solar capacity between H1 2024 and H1 2026. In generation terms, solar supplied an additional 44 TWh during this period. Wind, hydro, and nuclear power contributed an additional 13 TWh, 8 TWh, and 7 TWh, respectively.
Together, these sources generated about 70 TWh of additional electricity, creating a surplus that allowed fossil-fuel generation to remain flat. As of July 31, India’s installed solar capacity stood at 164.59 GW, up from just 2.8 GW in 2014. Overall installed power capacity reached approximately 552 GW, with non-fossil sources accounting for more than 54% of the total.
Grid Dynamics and the Role of Coal
Despite the growth in renewables, coal remains the backbone of India’s electricity system. CREA notes that generators added about 8.5 GW of coal-fired capacity during the two-year period, with around 43 GW under construction as of June 2026. However, the operating pattern of coal plants is changing. With higher availability of solar and wind power, coal plants are increasingly being used for fewer hours or for balancing the grid, requiring greater operational flexibility.
This shift has kept power-sector emissions broadly stable between H1 2024 and H1 2026, despite higher electricity consumption. However, this does not translate to a decline in national emissions. India’s total emissions increased by 3.7% year-on-year in H1 2026, driven primarily by the industrial sector. Steel and cement production rose by 8% and 9% respectively, contributing significantly to the overall increase.
State-Level Variations and Future Challenges
The transition is not uniform across states. Gujarat recorded the largest increase in clean-power generation and the largest decline in fossil-fuel generation. Rajasthan and Tamil Nadu also saw substantial shifts. In contrast, Maharashtra and Telangana, which had the largest increases in electricity demand, were able to match this growth with additional clean generation.
Looking ahead, the challenge lies in grid integration. CREA estimates that 5.3 GW of renewable projects have missed completion deadlines, and curtailment is an emerging concern. To address this, the government has proposed mandatory two-hour battery storage for new government-owned solar and wind projects from June 2027. Additionally, the National Electricity Plan projects a need for 411 GWh of storage by 2031-32, with tenders already covering around 272 GWh as of May 2026.
India is thus in a phase of simultaneous expansion, building renewable and nuclear capacity at unprecedented speeds while continuing to invest in coal for energy security. The next phase of the transition will depend on the pace of storage additions and grid upgrades to ensure reliable power delivery.