Coal power generation capacity in India has not increased at all from the first half of 2024 to the first half of 2026, marking the first time in over 50 years that coal power production in this country, the second-largest coal consumer in the world, has remained stable. These findings come from a new analysis conducted by the Centre for Research on Energy and Clean Air (CREA) to examine energy changes in India.
Significant Growth in Non-Fossil Energy Production
Lauri Myllyvirta, senior analyst at CREA, stated that during this period, the growth of non-fossil energy production in India has reached its highest level in history. This shift indicates a fundamental change in energy consumption patterns in India, as coal power generation has remained stable despite the overall increase in electricity demand.
Despite this significant growth in clean energy, India continues to make substantial investments in fossil fuel sectors. The country is planning to increase new coal power capacity, convert coal into chemicals, and also enhance coking coal production for the steel sector. According to CREA's analysis, by the end of June 2026, there were 43 gigawatts of coal power capacity under construction in India.
Coal Remains a Key Component of India's Power Mix
Despite the increase in renewable energy production capacity, coal remains a fundamental pillar of India's power mix, accounting for about two-thirds of the country's total electricity generation. Indian officials rely on coal to meet most of their electricity demand in order to prevent blackouts during extreme heat. Rajnath Ram, energy advisor at the NITI Aayog government think tank, stated at the end of last year that coal will continue to play a key role in India's power system for the next two decades.
He added, "We cannot view coal as a questionable energy source. The question is how sustainably we can use it." These statements highlight the challenges associated with coal use in the near future and emphasize the need to focus on sustainability in this area.
