Coal-based power generation in FY25 records lowest growth since Covid: CREA

Coal-based power generation recorded its slowest annual growth of 2.8 per cent in FY25 since Covid (FY21), even as overall electricity generation continued to rise, said a report by the Centre for Research on Energy and Clean Air (CREA).

While peak electricity demand remained nearly unchanged over the past two years, the peak demand met increased from 240 gigawatts (GW) to 250 GW in FY25. Notably, this increased demand was met largely with renewable energy.

In FY25, thermal power generation recorded the lowest year-on-year growth among all major electricity sources, rising by just 2.8 per cent.

This marks a significant slowdown compared to the previous three years, where thermal power saw steady increases of 9.9 per cent (FY24), 8.2 per cent (FY23), and 7.96 per cent (FY22), CREA said.

In contrast, nuclear power surged by 18.4 per cent, while large hydro and renewable energy grew by 10.8 per cent and 11.4 per cent, respectively. Thus, except thermal, all other generation sources witnessed stronger growth compared to previous year, it added.

Electricity generation

India’s electricity generation in FY25 touched a new high of 1,821 billion units (BU) marking a continuation of the upward trajectory since the pandemic slump. This represents a 5 per cent Y-o-Y growth over the 1,734 BU generated in FY24.

The pace of growth has started to moderate. FY24 recorded a 7 per cent increase over the previous year, and the year before that a sharp 9 per cent rise.

In FY25, India’s electricity generation rose across all sources on an annual basis. Thermal grew by 2.8 per cent (1,326 BU to 1,363 BU), nuclear by 18.4 per cent (48 BU to 57 BU), large hydro by 10.8 per cent (134 BU to 149 BU), and renewables by 11.4 per cent (226 BU to 252 BU).

In FY25, the peak demand met rose to 250.1 GW, registering a 4.2 per cent increase over the previous year. Interestingly, this figure nearly matched the total peak demand including unmet demand of 250.2 GW, indicating that the gap between demand and supply significantly narrowed, with just 0.1 GW (118 MW) of demand unmet.

Coal stock

At the start of FY26, coal stock at thermal power plants stood at 58.1 million tonnes (mt), reflecting a 15 per cent increase over 50.5 mt recorded at the beginning of FY25.

This continues a trend of higher opening stocks in recent years, compared to 36.9 mt in April 2023 and 25.4 mt in April 2022, suggesting an emphasis on pre-season stock accumulation amid rising power demand.

Published on April 19, 2025