India's October Coal Power Output Rises at Fastest Pace in Three Years

what happened

Reuters, citing its own calculations from daily data published by the regulator Grid-India, reports that India's coal-fired power generation climbed 25.7% year on year in October. That is the fastest annual pace in about three years. The main driver was a 26% drop in hydropower output caused by weak rainfall linked to the El Niño pattern, along with strong electricity demand from industry.

Coal's share of total generation rose to 71.7% from 66.03% in September. At one point in October, 100 of India's 191 coal plants were running with critically low fuel stocks. The government sped up coal deliveries at a record pace, and the fuel supply situation has since eased. Power shortages reached 560 million kWh in September, the highest since August 2023, and have eased somewhat by late October.

Renewable generation grew 34.7% to 26.61 billion kWh, but the clean energy share of total output fell to about 15% from 17% in September. Overall electricity generation rose 21.1% to 172.53 billion kWh.

why it matters

For the thermal coal market, the figures point to sustained domestic demand in India while hydropower remains weak. The drop in shortages by month-end reduces immediate grid stress, but the outlook will depend on rainfall and how quickly fuel reaches the plants.

market impact

Coal: stronger power demand in India supports thermal coal prices

• ▲Thermal coal pressure up — higher coal-fired generation lifts domestic demand for fuel in India

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