India’s coal power generation rose 25.7% year on year in October 2026, the fastest annual growth in three years. The jump came as weak rainfall cut hydropower output and factories used more electricity. Reuters calculated the figures from daily data published by the grid operator, Grid-India.
As a result, coal’s share of India’s electricity supply rose to 71.7% in October 2026. That compares with 66.03% in September 2026. In total, India generated 172.53bn kWh of power in the month, up 21.1% from a year earlier.
Why coal power generation surged
Hydropower was the main swing factor. Output from hydro plants fell 26%, the steepest drop since February 2024. The El Niño weather pattern weakened rainfall, so reservoirs held less water. Consequently, coal plants had to cover the gap.
At the same time, industrial demand kept rising. Strong factory activity added load to the grid just as hydro supply fell away. In other words, coal filled both holes at once.
Coal power generation strained fuel stocks
The extra demand strained fuel supplies at power stations. At one point in October 2026, 100 of India’s 191 coal-fired plants had critically low coal stocks. However, the government then moved coal to the plants at a record pace, and the situation has since eased.
Shortages had already been building. In September 2026, India’s power shortages rose to 560mn kWh, the highest since August 2023. Later, more coal power generation and cooler weather towards the end of October 2026 helped bring shortages down. For background, read our earlier report on why India shelved its coal import plan as stockpiles rose.
Renewables grew, but their share fell
Clean power also grew fast. Renewable generation rose 34.7% to 26.61bn kWh in October 2026. Solar led the way, with output up 62%.
Even so, coal grew faster still. Therefore, clean energy’s share of generation slipped to ~15% in October 2026. It was 17% in September 2026. This shows how much India still relies on coal when the monsoon disappoints.
What higher coal power generation means
For coal miners and railways, the trend means steady demand for coal shipments through the winter. For generators, it highlights the value of fuel stocks and flexible supply. Meanwhile, for the grid operator, it shows that solar alone cannot cover evening peaks when hydro is weak.
What to watch next
First, watch the coal stock levels at plants as winter demand builds in November 2026. Second, look for any return of power shortages if industrial demand stays strong. Finally, the next monthly Grid-India data will show whether coal’s share stays this high or eases as hydro recovers.
