October 12, 2026 - India’s electricity system is struggling to make full use of expanding renewable generation while meeting rising demand and maintaining coal supplies, according to a report released October 12 by the Centre for Research on Energy and Clean Air.

During July and August, approximately 1.835 billion kilowatt-hours of renewable electricity was curtailed, including 1.462 billion from solar and 373 million from wind. Curtailment occurs when generators must reduce output because the grid cannot accommodate or deliver the electricity. 

About 4.2% of solar generation could not be absorbed during those two months. Transmission and operational constraints limited renewable power use even as the country experienced electricity shortages and declining fuel inventories at coal plants.

Coal continued to provide roughly two-thirds of India’s electricity during the quarter ended September. Rising demand and a reported 20% decline in hydropower output, linked to El Niño conditions, increased reliance on fossil-fuel generation. 

The pressure on the power system was substantial. India generated 536 billion kilowatt-hours during July–September, an increase of 11% from a year earlier, according to CREA. Peak demand reached 270 gigawatts on July 16.

Coal generation remained high throughout the quarter, sustaining fuel consumption as power-plant inventories declined. By October 1, 85 plants held less than one-quarter of their prescribed coal-stock requirement, the report said. 

Renewable generation also expanded rapidly. Solar output increased 39% year over year, while renewable electricity excluding large hydropower exceeded 100 billion kilowatt-hours during the September quarter. 

The findings illustrate the importance of coordinating generating capacity with transmission infrastructure and dependable fuel deliveries. Adding power plants alone does not ensure that electricity can reach customers when and where it is needed. For India’s coal sector, the report highlights the continuing demands placed on mines, rail transportation and plant inventories while the country expands its renewable fleet.