Power generation in India plunged by 6% in October from a year earlier – the sharpest drop since the Covid lockdowns in 2020 – as lower industrial demand due to holidays and unusually rainy weather dampened consumption, according to a Reuters analysis of government data.
Total power generation fell to 142.45 billion kilowatt-hours (kWh), as a rainier-than-usual October lowered demand for cooling and the Diwali festival reduced power demand from industries.
“Continued rainfall in most parts of the country compared to last year led to lower demand,” Bhanu Patni, associate director at India Ratings and Research, told Reuters.
As a result of subdued demand, power output dropped, with coal-fired generation also falling at the steepest pace since 2020, per the data from grid regulator Grid-India analyzed by Reuters.
But India’s renewable energy generation soared by 30.2% from a year earlier to 19.75 billion kWh in October, according to the data.
Despite the surge in renewables, coal remains the dominant power-generating source in India accounting for about 60% of total electricity output.
India’s annual installations of new coal-fired power capacity hit 4 gigawatts (GW) in 2024, flat on the five-year high of 2023 and the highest level since 2019, according to official government figures.
India plans to add as much as 90 GW of coal capacity by 2032 as it looks to meet its surging power demand with reliable baseload electricity.
Despite booming renewable capacity additions, India continues to rely on coal to meet most of its power demand as authorities also look to avoid blackouts in cases of severe heat waves.
In July, India boasted achieving five years ahead of schedule its target to have 50% of its installed electricity capacity coming from non-fossil fuel sources.
By Tsvetana Paraskova for Oilprice.com
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