India’s Electricity Shortfall Hits Three-Year Peak

Total power generation climbed 11.3% last month to 174.17 billion kWh, yet the supply failed to keep pace with the spike in consumption. Coal-fired generation, which remains the backbone of the national energy mix, rose 13.3% year-over-year and now accounts for 66.03% of total output. While renewable energy production saw a 25.1% jump, its relative share of the grid actually declined to 17% from 19.5% in August.

Infrastructure constraints are complicating the recovery. Nearly 40% of India’s operational coal plants are currently running with critically low inventory levels, defined as having less than 25% of their required fuel stocks. These shortages persist even as plants operate at heightened capacity to compensate for diminished hydroelectric output caused by erratic monsoon rainfall. Looking ahead, the International Energy Agency projects a 4.2% increase in total coal demand to 1.353 billion tons for the year, underscoring the pressure on a system already strained by climate volatility and global supply chain disruptions.