NEW DELHI, India — Coal-fired power generation declined in both India and China in 2025 for the first time in more than five decades, as rapid growth in renewable energy helped meet rising electricity demand, according to a report by the Centre for Research on Energy and Clean Air.
Coal-based electricity generation fell 1.6 percent in China and 3 percent in India last year, marking what the report described as a historic moment. It is the first time since the early 1970s that coal power use has declined in both countries in the same year.
The shift carries global significance, as India and China together account for more than half of the world’s coal-fired electricity generation. Changes in their power systems therefore have an outsized impact on global emissions, the report noted.
The analysis, commissioned by Carbon Brief, said the combined drop in coal generation, alongside record growth in clean energy, could signal a turning point in the global energy transition.
China added a record 300 gigawatts of solar capacity and 100 gigawatts of wind power during the year, more than five times the United Kingdom’s total existing power generation capacity. Electricity generation from solar and wind rose by about 450 terawatt-hours, while nuclear power output increased by 35 terawatt-hours, the report said.
In India, renewable energy capacity additions accelerated sharply. The country added 35 gigawatts of solar power, 6 gigawatts of wind capacity, and 3.5 gigawatts of hydropower in the first 11 months of the year. Overall renewable capacity additions rose 44 percent year over year, according to the report.
The surge in clean energy reduced the need for coal plants to operate at high utilization levels, leading to a decline in coal output despite continued economic growth. The report said this marked the first time that growth in clean energy has played a significant role in pushing down coal-fired power generation in India.
The CREA analysis found that China’s recent expansion in clean electricity generation, if sustained, could be sufficient to lock in a peak in coal power use. In India, it said existing clean-energy targets, if achieved, would allow coal generation to peak before 2030, even if electricity demand growth accelerates again.
However, the report warned that extreme heat remains a major uncertainty. Coal plants are often relied upon to meet peak demand during heatwaves, particularly in the evening when solar generation declines. High temperatures can also strain coal plants themselves by reducing efficiency and increasing pressure on water supplies.
Despite the overall decline in coal generation, both countries continued to add new coal-fired capacity during the year. In China, approvals and construction of new coal plants moved ahead amid concerns over energy security and peak demand. India also advanced new coal projects, particularly to support industrial growth and rising electricity use during periods of extreme heat.
As a result, the gap between installed coal capacity and actual coal power generation has widened. The report said coal plants in both countries are increasingly operating for fewer hours each year, raising concerns about long-term costs and the risk of stranded or underutilized assets. (Source: IANS)
