India's coal power generation remained flat between the first halves of 2024 and 2026, a first in over 50 years, according to CREA analysis. This occurred despite overall electricity demand growth, driven by a record increase in non-fossil fuel power generation. However, India continues significant investments in coal capacity and fossil fuels.
India's continued reliance on coal, despite significant clean energy growth, highlights the complex energy transition challenges faced by major developing economies. The sustained investment in coal capacity, even as renewables expand, indicates that coal will remain a critical part of the energy mix for the foreseeable future, impacting global emissions targets and commodity demand.
India's coal power generation has seen no growth between the first halves of 2024 and 2026, a significant development marking the first such two-year period in over 50 years, according to an analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief. This stagnation occurred despite an overall increase in electricity demand and was driven by a record surge in non-fossil power generation.
Despite this clean energy boom, India continues to invest heavily in fossil fuels. CREA noted ongoing capital investments in new coal-power capacity, plans for coal-to-chemicals conversion, and efforts to boost domestic coking coal production for the steel sector. As of the end of June 2026, 43 gigawatts (GW) of coal-power capacity were under construction. Coal remains a crucial part of India's electricity mix, providing about two-thirds of total power output, essential for meeting demand and avoiding blackouts during heat waves.
Rajnath Ram, an adviser for energy at the government policy think tank NITI Aayog, stated late last year that coal will remain a key component of India's power system for the next two decades, emphasizing the need for sustainable usage.