India’s Coal Output Jumped 3.6% in December

India produced 101.45 million tons of coal last month, which represented a 3.6% increase on a year earlier, the Hindu reported today, noting the amount exceeded a monthly target of 87.06 million tons.

Over the first three quarters of the current fiscal year, however, India’s coal production is down by 0.64% on a year earlier, at 721.65 million tons, the publication also reported. India’s fiscal year runs from April 1 until March 31 the following year. The decline is at least partially attributable to disruptions caused by the monsoon season earlier in the year.

Interestingly, coal supplies to the power generation industry dipped in December by 7%, even though power generation from coal and gas expanded during the reported month by 4.42%. India saw a seasonal record power consumption in December, with peak demand surging very close to the summer levels, when electricity demand in the country is at its highest.

Chillier weather in December and the increased use of heating appliances resulted in peak demand surging to 241 gigawatts, up by 7.5% compared to December 2024, according to data from India’s Central Electricity Authority cited by Bloomberg earlier this month. This was very close to the 243 GW peak demand this summer. India’s electricity demand is typically at its highest during the summer amid heat waves and scorching temperatures.

Meanwhile, coal-fired power generation and capacity installations in India continue to rise and coal remains a key pillar of India’s electricity mix with about 60% share of total power output. In December, coal and gas generation combined accounted for 74% of the country’s energy mix amid peak demand. That’s despite efforts to decarbonize the grid, leading to record-breaking solar installations. Indeed, last month, Bloomberg reported that India’s government was considering postponing the suspension of new coal generation capacity from 2035 to 2047, at least.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com