India’s electricity generation experienced a slowdown in September 2025, with a 3.2% year-on-year increase, down from 4% in August. This marks the first monthly decline in three months, attributed to reduced industrial activity and prolonged monsoon conditions that decreased energy demand, especially for evoplay games cooling.
Industries, which account for nearly half of India’s domestic power consumption, significantly influence overall power output. In September, coal-fired power generation, typically responsible for about 75% of the country’s electricity production, declined. Coal India, the largest coal producer, reported a 4% decrease in production and a 1.1% drop in supply. However, thermal power plant inventories remain sufficient for short-term needs.
Despite the slowdown in fossil fuel-based generation, renewable energy sources continued to grow. Solar and wind energy production increased due to record capacity additions, with India installing 30 GW of new capacity in the first eight months of 2025. Hydropower also saw a 7.4% year-on-year growth. These developments contribute to India’s goal of reaching 500 GW of non-fossil fuel capacity by 2030.
The deceleration in power output growth underscores the challenges faced by India’s power sector in balancing the transition to renewable energy with the need to meet rising electricity demand. While renewable energy expansion is progressing, the reliance on coal and other fossil fuels remains a significant aspect of the energy mix. Addressing these challenges will require continued investment in renewable infrastructure, grid modernization, and policies that support a sustainable and resilient energy future.
