India curbs coal output amid cooling power demand and high coal stocks

In a sign of India’s ongoing transition towards clean energy, the country has slowed coal production amid large stocks of unused coal lying at pitheads. Government sources told CNBC-TV18 that nearly 100 million tonnes (MT) of coal are currently available at pitheads, in addition to stocks sufficient for over 21 days of power supply at thermal power plants (TPPs). Approximately 2.05 MT of coal is being consumed daily for power generation in the current season.

Sources added that peak power demand this year has been lower than normal, with increased generation from renewable sources and extended rainfall keeping temperatures cool and suppressing thermal power demand further. India’s peak power demand in 2025 has ranged between 240 GW and 245 GW—well below the Central Electricity Authority’s (CEA) earlier projection of 277 GW. Plans are also underway to phase out the import of natural gas for power generation, in a bid to curb both import dependence and greenhouse gas emissions.

In July this year, India achieved a key milestone in its energy transition journey by reaching 50% of its installed electricity capacity from non-fossil-fuel sources—five years ahead of the target set under its Nationally Determined Contributions (NDCs) to the Paris Agreement and the UNFCCC (United Nations Framework Convention on Climate Change). Over the past decade, India’s renewable energy capacity has expanded more than fivefold—from under 35 GW in 2014 to over 197 GW (excluding large hydro) as of October 2025.
At the start of FY2025-26, India had 169.40 GW of renewable energy projects under implementation and another 65.06 GW already tendered. This includes 65.29 GW from emerging solutions such as hybrid systems, round-the-clock (RTC) power, peaking power, and thermal + renewable energy (RE) bundling projects.

A few days ago, the Ministry of New and Renewable Energy (MNRE) highlighted the following ongoing initiatives as key future growth drivers:

• Large hybrid and RTC projects moving into execution across Rajasthan, Gujarat, and Karnataka
• Offshore wind and pumped hydro storage projects
• Distributed solar and agrovoltaic initiatives under PM Suryaghar and PM-KUSUM, with deeper rural participation
• The National Green Hydrogen Mission, linking renewables with industrial decarbonisation
• RE integration through the strengthening of the Green Energy Corridor Phase III