India’s power output growth slowed in September, a result of both a longer monsoon that decreased the need for cooling and a decline in industrial activity. Despite a 3.2% year-over-year increase, power output fell for the first time in three months, falling short of August’s 4% gain. The slowdown was closely associated with a decline in industry expansion and prolonged rains in essential locations, both of which kept energy consumption low, according to Grid India’s daily study. Reduced industrial demand had a significant impact on the entire system, as industries in India consume approximately half of the country’s electricity.

Coal-Fired Generation and Industrial Demand Slowdown

• Typically accounting for around 75% of India’s annual electricity production, coal-fired power saw a decrease in September compared to August.
• According to company data, the largest coal producer in the nation, Coal India, had a 4% decrease in output during the month and a 1.1% decrease in supplies.
• According to Vasudev Pamnani, director of the coal trading company I-Energy Natural Resources, “industrial demand and thermal power consumption remain subdued.” Coal power plant inventories have decreased somewhat, but there are still sufficient supplies to meet immediate needs.
• A late and extended monsoon season that reduced power consumption for air conditioning and cooling systems, together with slower industry growth, were the leading causes of the demand for cooling.

This trend highlights why India’s power output growth slowed in September, becoming a key concern for policymakers and energy producers, as it points to broader industrial activity cooling alongside shifts in weather-driven consumption patterns.

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Renewable Energy and Hydropower Expansion

• Renewable energy continued to bolster India’s electricity sector, even as coal-based generation slowed. Large-scale capacity expansions contributed to strong growth in solar and wind generation.
• In the first eight months of 2025, India installed a record 30 gigawatts of additional renewable capacity, including wind and solar. The government’s goal of 500 GW of non-fossil fuel capacity by 2030 aligns with this.
• While hydropower output increased by 7.4% in September, renewable energy sources generated 16% more electricity than they did in the same month of the previous year. The decrease in thermal generation was mitigated by their combined contribution of 156.52 billion kilowatt hours.
• The nation’s reliance on coal is steadily declining due to the increasing proportion of renewable energy sources, indicating a longer-term structural change in the power mix.

The data underscores that while India’s power output growth slows in September, the resilience of renewable energy and hydropower is steadily reshaping the country’s electricity landscape.

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