India's decades-long reliance on coal has reached a significant turning point. For the first time in fifty years, coal-fired electricity generation in the country recorded a year-on-year decline in 2025. This shift comes as renewable energy sources expand rapidly across the nation.
A Historic Decline in Coal Power
According to a new study by the Centre for Research on Energy and Clean Air (CREA), coal-fired plants generated 1,283 billion units of electricity in 2025. This figure represents a 3% drop from the 1,322 billion units produced in 2024. The decline occurred even as overall electricity generation increased by about 1% during the same period.
The trend of slowing coal power growth has been evident for several years. In 2024, coal-fired generation increased by only 5%, compared to a 15% rise in 2023. While coal generation briefly dipped in 2022 due to pandemic-related industrial slowdowns, the 2025 decrease marks a more structural change.
Renewables Drive the Shift
Multiple factors contributed to the reduction in coal-fired electricity generation. The primary driver was the substantial growth in renewable energy output. Generation from renewable sources surged by 22% in 2025, reaching 270 billion units compared to 221 billion units in 2024. Large hydroelectric power also saw a 15% increase, producing 180 billion units.
Other elements played a role as well. A relatively milder summer and slower growth in power demand helped reduce the need for coal-based electricity. These combined factors created the conditions for this historic decline.
Implications for India's Energy Future
The rapid expansion of clean energy capacity is reshaping India's power sector. In the first eleven months of 2025 alone, the country added 41 gigawatts of new renewable capacity. This growth suggests that India may need to revise its plans for coal capacity additions targeted for the 2030 period.
The CREA study indicates that significant new coal additions might not be necessary to meet India's electricity demand by 2030. Existing coal fleets, projects under construction, and the expanding renewable and storage pipeline could suffice. Data shows that even on peak demand days, the full coal fleet is not required to meet national load, with renewables increasingly supporting supply during critical hours.
Broader Climate Impact
India ranks as the world's third-largest emitter of greenhouse gases, with the power sector contributing approximately 40% of emissions. The decline in coal-fired generation aligns with earlier findings. In September 2025, CREA reported that India's power sector carbon dioxide emissions decreased in the first half of the year compared to the same period in 2024. This marked the first half-yearly dip in power sector emissions.
China, the largest global emitter, experienced a similar trend. Research by CREA for Carbon Brief revealed that China's coal-based electricity generation fell by 1.6% in 2025, its first annual decline in fifty years. In October 2025, China announced plans to rein in emissions, targeting a 7-10% reduction from peak levels by 2035.
Global Significance
The shifts in India and China carry substantial international implications. According to Carbon Brief, the power sectors of these two nations drove 93% of the global rise in carbon dioxide emissions from 2015 to 2024. Both countries now possess the preconditions for peaking coal-fired power generation, signaling a potential turning point in global climate efforts.
As renewable energy continues to gain momentum, the trajectory of coal power in India remains a critical watchpoint for policymakers and environmental observers alike.
