India’s Renewable Power Generation Crosses 100 BU In Q2 FY2026-27

India’s renewable electricity generation, excluding large hydropower, crossed 100 billion units (BU) for the first time in Q2 FY2026-27, reaching 101 BU, as electricity demand and generation increased year-on-year. According to the Centre for Research on Energy and Clean Air (CREA), total electricity generation rose 11% to 536 BU during the quarter, while peak demand reached a record 270 GW.

Solar generation increased 39% year-on-year to 51 BU, while wind generation rose 29% to 45 BU. Solar accounted for 10% of India’s total electricity generation during the quarter and recorded a new daily high of 705 million units (MU) on September 30. Combined non-fossil generation, including renewable energy, large hydropower and nuclear power, reached 177 BU, up from 163 BU a year earlier.

Despite the growth in renewable generation, coal and lignite continued to account for the largest share of electricity output. They generated 351 BU, or around 66% of total generation, during Q2 FY2026-27, compared with 312 BU, or 65%, in the year-ago quarter. CREA’s assessment puts coal power plant utilisation at 68% during the quarter, while national peak demand was 18% higher than the 230 GW recorded in Q2 FY2025-26.

Coal Supply Constraints Persist Amid High Consumption

Coal consumption at power plants remained around 79 million tonnes per month from June through September. However, coal dispatch to power plants declined from 74 million tonnes in May to 66 million tonnes in August. Average coal freight train rake loading also fell from around 290 rakes per day in June to 280 in August, before rising to 444 rakes on September 6.

Coal stocks at power plants stood at 21 million tonnes on September 30, equivalent to 36% of the normative requirement of 58 million tonnes. The number of plants with coal stocks below 25% of their normative requirement increased from 32 on August 22 to 84 on September 30 and 85 by October 1, according to CREA.

The report indicates that coal supply remained under pressure even as coal continued to contribute the majority of electricity generation. The figures also point to a gap between available coal inventories and the requirements set for power plants.

Renewable Capacity Additions Outpace Thermal Power

India’s installed power capacity reached approximately 555 GW by the end of August 2026, with non-fossil sources accounting for around 55% of the total. Renewable energy capacity excluding large hydropower stood at 243 GW, including 168 GW of solar capacity.

Renewable capacity additions totalled around 7 GW in Q2 FY2026-27, compared with 0.8 GW of thermal capacity. The quarter also saw the retirement of approximately 648 MW of thermal capacity, comprising 440 MW of coal-based capacity and 208 MW of gas-based capacity.

Separately, 44 GW of coal-based power capacity was under construction as of August 2026. Around 40 GW, or 90% of this pipeline, was at less than 50% completion, according to the CREA assessment.

Energy Storage Capacity Expands

India had around 9.1 GWh of operational battery energy storage capacity as of the report’s assessment. Approximately 290 GWh of storage capacity had been tendered by August 2026, comprising around 142 GWh of pumped storage projects and 151 GWh of battery energy storage systems.

Energy storage contributed up to 5.5 GW during nighttime peak demand in Q2 FY2026-27, compared with 4.1 GW in the previous quarter. The report also estimates that around 3 GWh of additional battery storage capacity is expected to be commissioned by December 2026.

Commenting on the findings, Manoj Kumar, India Analyst at CREA, said coal power plant utilisation stood at 68% despite peak demand reaching 270 GW. He said future thermal capacity requirements should be assessed alongside projected electricity demand, renewable generation and storage availability, as solar increasingly meets daytime demand and storage supports evening and nighttime peaks.

The assessment draws on data from GRID-INDIA, the Ministry of Coal, the Central Electricity Authority and the National Power Portal.