Key facts
- India's coal-fired power generation reached a record high for July.
- Coal-fired generation rose 13% year-on-year to 114.7 TWh.
- Hydropower output decreased by 18% due to a weak monsoon.
- Total generation, excluding renewables, increased by 7.3% to 143.9 TWh.
- Thermal coal imports likely fell for the seventh consecutive month.
- Coal stocks at thermal power plants decreased to 38 million tonnes.
India's coal-fired power generation reached a record high for July, driven by a weak and uneven monsoon that curbed hydropower output and supported cooling demand. Coal-fired generation rose 13% year-on-year to 114.7 TWh, surpassing the previous July record set in 2024. The delayed and patchy monsoon led to reduced reservoir inflows, impacting hydropower generation, which fell 18% to 17.7 TWh. This necessitated increased reliance on coal plants to meet peak demand. Total generation, excluding renewables, increased 7.3% to 143.9 TWh, exceeding the monthly generation plan. Nuclear output saw a 19% increase. Renewable generation is estimated to have risen to around 37.5 TWh. Despite higher coal consumption, demand for imported coal remained subdued as domestic supply met the increased demand. Utilities drew on domestic inventories rather than seaborne cargoes, leading to a decrease in coal stocks at thermal power plants to 38 million tonnes from 54.2 million tonnes a year earlier. The outlook for coal demand hinges on future monsoon performance, with forecasts indicating potential suppression of precipitation due to El Niño, which could sustain cooling demand.