October 1, 2026 - India’s electricity shortages reached their highest level in more than three years in September, even as coal-fired generation increased to meet rising demand.

The shortfall totaled 560 million kilowatt-hours, the largest since August 2023, according to Reuters calculations using Grid-India data. Coal-fired electricity production increased 13.3% from September last year, supplying 66.03% of total generation, compared with 64.6% in August.

Coal plants operated at higher capacity for a sixth consecutive month. Increased industrial consumption, weather associated with El Niño and reduced hydropower output added pressure to the electricity system. Analysts also identified limited battery storage and maintenance outages as contributing factors.

Total electricity generation rose 11.3% year over year to 174.17 billion kilowatt-hours. Renewable generation increased 25.1% to 29.62 billion kilowatt-hours, although its share declined to approximately 17% from 19.5% in August.

About two in five coal-fired plants were operating with critically low fuel inventories, according to separate government data cited in the report.

The inventory pressure had been building earlier in September. Central Electricity Authority figures showed 59 plants with critically low stocks on September 9, up from 45 at the end of August. India increased rail deliveries, while Coal India and its subsidiaries expanded road shipments. Coal India reported approximately 76 million metric tons of coal at its mine sites at that time.

To strengthen electricity supplies, India ordered more than 100 captive coal-fired power plants to maximize output from October 1 through the end of the year. The directive responds to an anticipated increase in electricity demand.

September’s figures show that higher coal and renewable generation have not eliminated supply pressures. Maintaining adequate plant-level coal inventories remains an immediate challenge as India seeks to meet growing electricity requirements.