India Achieves Record Renewable Energy Generation in July, Reducing Coal’s Share to Lowest in a Year

Key Takeaways

Coal’s share in India’s power generation fell to its lowest in a year, dropping to 65.7% in July.
Renewable energy reached a record high, constituting 20% of India’s generation mix.
Hydropower generation declined due to El Nino, contributing to a potential power-generation gap.

Coal Share Declines Amid Renewable Surge

New Delhi: India saw a notable decline in the share of coal in its power-generation mix in July, reaching its lowest point in a year as renewable energy generation soared to unprecedented levels. Government data revealed that renewable energy accounted for 20% of the total power mix, translating to 36.25 billion kilowatt-hours (kWh) in July, reflecting a 30% increase compared to the same month last year.

Coal-fired power generation dropped to 65.7% in July from 69% in June, according to calculations from Reuters based on daily data from Grid-India, the national power regulator. This reduction coincided with a landmark achievement in clean energy, as solar and wind outputs surpassed 100 gigawatts for the first time, making up 42.8% of India’s electricity supply on July 13. Manoj Kumar, an analyst at the Centre for Research on Energy and Clean Air, pointed out that much of the peak power demand occurred during the day, highlighting the increasing contribution of solar energy to India’s overall power generation.

While renewable energy made gains, coal-fired generation saw a year-on-year increase of about 12.8%, amounting to 119.40 billion kWh in July. Analysts noted that this rise in coal reliance was largely due to a decline in hydropower output, which fell for the second consecutive month to just 22.1%. This reduction can be attributed to the ongoing El Nino weather pattern, which alters rainfall distribution and raises temperatures.

As hydropower generation continues to struggle amidst El Nino conditions, there is concern about a power-generation gap approaching 18 billion kWh. This shortfall is expected to further drive reliance on coal-fired power plants in India, according to the Centre for Research on Energy and Clean Air (CREA). Overall electricity generation for July rose by 10.4% from the previous year, totaling 181.79 billion kWh.

The interplay between renewable energy growth and coal dependence raises important considerations for India’s energy strategy moving forward, especially as climate factors like El Nino continue to impact generation capacities.

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