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(The opinion expressed here is the author, a columnist for Reuters.)
Littleton, Colorado, June 10 (Reuters)-There has been an increase in power generation from Saur farms, there has been a rare decline in fossil fuel power generation in India in 2025, and is setting a platform for a possible decline in annual coal production in the world’s second largest coal consumer.
A record in the solar generation during January to April 32.4% before jumping a coal -powered generation flat and cutting outputs up to 27% has helped utilities to lift the overall power supply, showing amber data.
Through January through April, high solar energy production continued through the coming months, marking the peak in India’s annual coal production, can allow the utilities to be cut in 2025 after 2020 to cut the use of full-year coal in 2025 for the first time.
India’s power generation from solar farms was 57.8 Terravat Hour (TWH) during January to April, which was according to Amber.
It was about one -third more during the same months in 2024, and came behind about 30% climb in the solar production capacity installed in the last one year.
The level of in turn recorded the solar energy share of India’s power generation mixture during March and April to 2024 compared to an average of 7%.
Overall clean power generation in India climbed to 23% during January to April for the same months as last year, and so far, 23.3% of India’s total power generation has been helped by clean power sources.
With the supply of clean power supply at a record high level, India’s utilities were able to trim generations from fossil fuel -powered power plants in 2025 so far in 2025.
A decrease in fossil use is modest compared to more than 20% annual expansion in clean power supply.
But given the rapid pace of increasing energy demand in India, it is rare to post anything other than strong annual expansion in the deployment of fossil fuel power for utilities.
Indeed, the last time fossil fuel power generation declined before a year in January to 2020, when India’s economy was killed by Kovid -19 lockdown.
Moving forward, fossil fuels will remain the main pillar of India’s power generation system, and will supply about 75% of the country’s electricity.
What is more, the coal will remain even to the major single power source in the country.
However, with the increase in clean power supply at an average speed of about 10% per year from 2020, India’s overall power generation system will continue to increase.
And as the increase in clean power supply can often exceed the increase in power demand, power producers may have scope to cut fossil production during softening power demands.
One of those soft demand periods may lie further, as India’s utilities have cut fossil fuel production during the August period from the first four months of the year in five of the last six years.
A major driver of this fossil fuel recession is a seasonal cheerful in hydro power generation since May, which compensates the country’s dams and reservoirs due to India’s monsoon rains.
Between 2019 and 2024, the level of high mid -year rainfall was more than double in the monthly hydro power supply between May and August.
2025 The forecasts for the monsoon are calling for up-to-high rain, expected to be about 6% above the long-term average with rain sum.
At the top of it, utilities can expect an additional clean power supply from solar fields in summer, which continue to expand the generation’s capacity every month.
The combination of record solar generation as well as high hydro output attracts India’s utilities to create more curb for coal production in the coming months, and determines the platform for a rare year-by-year shortage in overall coal use.
The opinion expressed here is the author, a columnist for Reuters. Enjoying this column? See your new source of Ritter Open Interest (ROI) for global financial comments. The ROI distributed ideas-stimulating, data-operated analysis of everything from swap rates to soybean. Markets are moving faster than ever. ROI can help keep you. Follow ROI on LinkedIn and X.
(Reporting by Gavin Maguire; Editing by Stephen Quotes)
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