Coal Remains Backbone of India's Power Supply

29 Jul 2026 CW Team

It said distribution companies have been asked to promote energy efficiency measures to optimise cooling and pumping loads, encourage electric vehicle charging during daytime solar hours and shift agricultural demand to daytime where possible. The reply to the Lok Sabha explained that demand management is gaining emphasis alongside capacity growth to reduce stress on the system. The ministry noted that these measures aim to align consumption with rising renewable output.

The government attributed a sharp rise in electricity demand to El Nino conditions, reporting peak demand during April–June up around 12 per cent year on year and an all time high peak of 270.8 GW in May that was met successfully. Demand crossed 270 GW twice again in July and was met, while gas based generation continues to account for less than 2 per cent of the power mix. Thermal power plants held 41.4 million tonnes (mn t) of coal stock as on July 18, sufficient for 13 days at an 85 per cent plant load factor.

The reply highlighted improvements in supply, saying average daily electricity availability in rural areas rose from 12.5 hours in fiscal 2013–14 to 22.6 hours in fiscal 2025–26 while urban supply rose from 22.1 hours to 23.4 hours. It noted that India's energy shortage declined to 0.0 per cent in FY2025–26 from 4.2 per cent in FY2013–14, reflecting significant progress in supply adequacy. The ministry therefore presented a picture of adequate power while underlining the need for demand side measures as renewable capacity expands.

The government told Parliament that coal continues to remain the backbone of India's electricity system despite rapid renewable expansion, with coal and lignite based plants accounting for 69.54 per cent of electricity during April–June 2026. It said these plants generated 188.8 gigawatts (GW) and supplied around three quarters of total generation during non-solar peak demand hours, underlining coal's role in meeting evening loads. The ministry framed this as part of a strategy to balance capacity addition with changes in consumption patterns. It said distribution companies have been asked to promote energy efficiency measures to optimise cooling and pumping loads, encourage electric vehicle charging during daytime solar hours and shift agricultural demand to daytime where possible. The reply to the Lok Sabha explained that demand management is gaining emphasis alongside capacity growth to reduce stress on the system. The ministry noted that these measures aim to align consumption with rising renewable output. The government attributed a sharp rise in electricity demand to El Nino conditions, reporting peak demand during April–June up around 12 per cent year on year and an all time high peak of 270.8 GW in May that was met successfully. Demand crossed 270 GW twice again in July and was met, while gas based generation continues to account for less than 2 per cent of the power mix. Thermal power plants held 41.4 million tonnes (mn t) of coal stock as on July 18, sufficient for 13 days at an 85 per cent plant load factor. The reply highlighted improvements in supply, saying average daily electricity availability in rural areas rose from 12.5 hours in fiscal 2013–14 to 22.6 hours in fiscal 2025–26 while urban supply rose from 22.1 hours to 23.4 hours. It noted that India's energy shortage declined to 0.0 per cent in FY2025–26 from 4.2 per cent in FY2013–14, reflecting significant progress in supply adequacy. The ministry therefore presented a picture of adequate power while underlining the need for demand side measures as renewable capacity expands.

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