India Coal Contribution To India Electricity Mix Expected To Fall To Sixty Percent
India’s reliance on coal for electricity generation is set to decline significantly, with its share in the national power mix expected to fall from over 70% in 2025 to around 60% by 2030. Despite this reduction in percentage terms, total coal demand is projected to rise due to growing industrial consumption, reflecting the country’s efforts to balance energy security, economic growth, and the transition towards renewable power.
According to the International Energy Agency (IEA), coal-fired power generation in India is expected to drop by 3% in 2025, contributing to an overall 1.2% fall in coal consumption from the previous year. Strong hydropower output, following a favourable monsoon, coupled with moderate electricity demand for cooling and a steady expansion of solar and wind capacity, have helped temper coal use for power generation. Total coal consumption for 2025 is estimated at 1,297 million tonnes (MT), with approximately 940 MT allocated to electricity production.India’s domestic coal production reached a record 1,082 MT in 2024, mostly thermal coal, slightly outpacing demand. This surplus has supported the country’s strategy of reducing imports, strengthening energy security, and mitigating domestic price fluctuations. Installed power generation capacity stood at 495 gigawatts (GW) in August 2025, including 253 GW of coal-fired plants, 123 GW solar, 52 GW wind, and 42 GW hydropower, alongside smaller contributions from nuclear and gas.
While renewable capacity is expanding steadily toward the government’s 500 GW non-fossil target for 2030, India also commissioned or began trial operations at 20 new coal-fired power plants totaling 14 GW in 2025, indicating coal’s ongoing role in providing stable baseload power. “The reduction in coal’s share for electricity alongside rapid renewable growth signals momentum for India’s energy transition,” said a senior energy analyst.Industrial coal demand is emerging as the primary driver of overall consumption growth. Strong expansion in cement and steel production, alongside coal-based direct reduced iron and gasification projects, is expected to push non-power coal demand from 356 MT in 2025 to 470 MT by 2030. India’s cement sector, the world’s second-largest, is projected to grow 5–6% in 2025, sustaining the need for coal in industrial applications.
By 2030, overall coal demand is projected to reach 1,522 MT. While coal’s dominance in electricity generation is gradually declining, it remains crucial for India’s industrial economy and energy security. The dual trend—falling coal share in power and rising industrial consumption—underscores the need for an integrated energy strategy that advances sustainable urban growth, climate resilience, and inclusive access to clean energy.
