India’s Coal Consumption Surges as Heatwaves Overpower Renewables

The spike in coal usage persists despite India’s aggressive expansion into wind and solar infrastructure, which grew by 23% annually and now accounts for 19% of the total energy mix. However, the shortfall in other sectors remains stark: hydropower production plummeted by 24.4% in June, largely due to drier conditions linked to El Nino. Gas-fired generation also cratered, falling 30.1% as high global prices—exacerbated by ongoing conflicts in the Middle East—rendered the commodity less viable for the power grid.

Looking ahead, credit rating agency ICRA anticipates that coal will remain the backbone of India’s energy security through the year. Government-linked projections suggest this reliance may be far from temporary. Current energy policies indicate that national coal demand could balloon from 1.256 billion tons in 2025 to 2.615 billion tons by 2050. Even with a transition toward cleaner alternatives, analysts expect coal requirements to remain elevated well into 2070 if existing consumption trends continue.