Industry

India Records Sharpest Fall in Electricity Production Since Covid-19 Pandemic—Here’s Why

Rains and weak industrial demand drag India’s power generation to post-pandemic low

India’s power generation dips to post-pandemic low
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Summary
Summary of this article
  • Power output fell 6% in October amid rainfall and weak industry.

  • Coal-fired generation dropped 13.2%, marking biggest fall since June 2020.

  • Renewable output surged 30% in India, indicating a shift toward clean energy.

India recorded a sharp drop in its electricity production in October, which is the biggest fall since Covid-19 pandemic—due to subdued industrial activity and unusually wet weather that reduced electricity demand and dependency on air conditioning, reported Reuters.

Citing data from federal grid regulator Grid-India, Reuters reported that total electricity generation in October fell 6% year-on-year to 142.45 billion kilowatt-hours (kWh).

Experts also attributed the reduction in power demand due to a broader economic slowdown and heavy rains, which have reduced cooling demand.

The country's coal-fired electricity generation in October also fell at the fastest pace since June 2020, when the Covid-19 pandemic led to a nationwide lockdown, as overall power demand declined.

Coal-fired generation, which typically accounts for about 75% of India's electricity output, has fallen in six out of 10 months this year, the most since 2020, Grid-India data showed.

India's coal-fired power generation fell by 13.2% in October on an annual basis to 98.38bn kilowatt-hours (kWh), Grid-India data showed.

The decline in demand for fossil fuels for electricity generation in India, the second-largest importer of coal, has hurt giant miner Coal India.

The company's production declined about 10% in October, while coal supplied to power plants fell 6%.

Meanwhile, India's renewable energy output surged to 19.75bn kWh in October, up 30.2% from a year earlier.

India’s Energy Mix Shifts

Coal India, which accounts for about three-quarters of the country's production, suffered its worst profit decline in five years during the quarter ended September due to tepid demand for power this year.

Despite that, renewable energy output, which includes solar and wind output among others, surged by over 30.2% year-on-year, indicating an inclination toward cleaner energy.

According to a news release published by Ministry of Power on 30 September 2025, the country’s total installed electricity capacity has crossed 500 GW, reaching 500.89 GW, indicating years of strong policy support, investments and teamwork across the energy sector.

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