India's power sector: Coal dips as renewables rise

India Jan 07, 2026

In 2025, India's coal power generation dropped by 3%—a rare shift after decades of steady growth.
Renewables like solar and wind powered much of this change, cutting nearly half the coal use decline.
Milder weather and slower demand also helped ease the pressure on coal plants, according to a new CREA report.

What's changing with India's energy mix?

By late 2025, renewables made up 40% of India's total power capacity (510 GW), with solar leading the way.
Coal still supplied about 43% of installed capacity in 2025 but is set to fall closer to 60% by 2030.
With more clean energy coming online—and even more capacity than needed in the pipeline—India is quietly gearing up for a greener future.