India's Power Shift: Coal Declines as Solar Surges

India's coal-fired power fell for two consecutive months in September due to lower electricity demand and increased solar generation. This marks a shift as India's economy grows, with solar and hydropower rising. Coal imports and production also decreased, indicating a move towards renewable energy.

India's coal-fired power generation decreased for the second month in a row this September, underscored by slower electricity demand and a surge in solar power output, according to data from the federal grid regulator reviewed by Reuters.

This decline represents a significant shift in fuel usage in India, the world's fastest-growing major economy and its third-largest greenhouse gas emitter. It comes after 47 consecutive months of year-on-year growth in coal usage for power generation. Post-pandemic, India's electricity demand has consistently climbed due to economic expansion and heatwaves, but the monsoon season's heavy rainfall reduced air-conditioning needs, which curbed power consumption.

In the west and north regions, substantial rain in September led to diminished power demand, as highlighted by CRISIL, a division of S&P ratings agency. Concurrently, a surge in solar power installations saw a 26.4% increase in generation, boosting the renewables' share of India's electricity to a record 13.9% this quarter.