India's growth in power production slows down in September, as industrial momentum eases
India's electricity production slowed down in September due to a decrease in industrial activity, and a prolonged monsoon that reduced cooling demands.
Grid India's daily analysis shows that power output increased 3.2% on an annual basis, but it fell short of the 4% increase in August. This is the first drop monthly since three months.
The slowdown coincided with the continued rain and a slower manufacturing expansion, both of which reduced energy consumption. India's power consumption is largely accounted for by the industries.
In September, coal-fired power generation fell compared to the previous month. This is a significant decline compared with August.
The largest coal miner in the country also saw its production and supply fall, which is consistent with the overall drop in power output.
Data from the company showed that Coal India's September production dropped by 4% while its supply fell by 1.1%.
"Industrial consumption and thermal power consumption are still subdued...Coal power plant inventories, while slightly down, remain sufficient for the near-term needs," stated Vasudev Pamanani, director of I-Energy Natural Resources.
Renewable energy and hydropower have continued to grow despite the slowdown of thermal generation. The output of solar and wind energy increased as a result of the additions to capacity.
India has added 30 gigawatts to its solar and wind power in the first eight month of 2025, and plans to reach 500 GW by 2030.
India has reduced its reliance on coal to generate electricity this year due to the sustained growth of renewable energy.
The data revealed that a 16% rise in electricity production from renewable sources, such as wind and solar, combined with an annual increase of 7.4% in hydropower, led to a total electricity generation in September of 156.52 kilowatt-hours. Reporting by Sethuraman NR, Editing by MrigankDhaniwala
(source: Reuters)
