CREA’s analysis for Carbon Brief shows India’s coal-fired generation remained flat from H1 2024 to H1 2026 — the first two-year pause in over 50 years — driven by a record rise in non-fossil power output. Despite the clean-energy surge, about 43 GW of coal capacity was under construction at the end of June 2026, and coal still supplies roughly two-thirds of the country’s electricity. The findings underscore a tension between rapid renewable deployment and ongoing investments in coal supply and infrastructure.
India’s Clean-Energy Surge Halts Two-Year Growth in Coal Generation
India’s Clean Energy Boom Halts Coal Power Growth
India’s coal-fired electricity generation remained flat between the first half of 2024 and the first half of 2026 — the first two-year pause in coal-generation growth in more than 50 years, according to a new analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief.
CREA’s findings attribute the stagnation in coal output to a record rise in non-fossil power generation over the same period. Lauri Myllyvirta, lead analyst at CREA, wrote that "the period from the first half of 2024 to the first half of 2026 saw the largest increase in non-fossil power generation on record in India."
The rapid expansion of renewables and other non-fossil sources has, in aggregate, outpaced growth in coal generation even as overall electricity demand increased. This marks a notable milestone in India’s energy transition but does not mean coal is disappearing from the power mix.
Ongoing Coal Investments
CREA cautioned that, despite the clean-energy boom, India continues to pursue substantial investments tied to coal. As of the end of June 2026, roughly 43 gigawatts (GW) of coal-fired capacity were under construction. Policymakers and industry remain committed to projects such as new coal plants, coal-to-chemicals proposals, and efforts to raise domestic coking-coal output for steelmaking.
Overall coal-fired capacity installations continue to rise, and coal still accounts for about two-thirds of India’s electricity output. Policymakers emphasize coal’s continued role to ensure grid reliability during extreme heat and other supply stresses.
Rajnath Ram, energy adviser at NITI Aayog: "We cannot be subjective about coal. The question is how sustainably we can use it."
The CREA/Carbon Brief analysis highlights a central tension in India’s energy path: record non-fossil growth is reducing the pace of coal-generation expansion, but large financial and industrial commitments to coal supply and capacity persist. How policymakers balance rapid renewable deployment, grid reliability and existing coal investments will shape India’s energy trajectory over the coming decades.
By Tsvetana Paraskova, Oilprice.com
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