India's daily thermal power output dips to record 62% low, RE's share rises

Share of core renewables touches a high of 17% for the first time, according to official data

India’s daily thermal power generation for the first time dipped to a low of 62 per cent on Tuesday, meaning the share of aggregate renewable energy (RE) climbed to 38 per cent. Within RE, the share of core renewables (solar, wind, and biomass, minus hydel and nuclear) has for the first time touched a high of 17 per cent. It had hovered at around 13 per cent for the past five years.

 

The dip in thermal power generation and the rise of RE is not just a record, but it is the clearest evidence that RE generation is well on the way to become a commercially viable business case in India.

 

In no financial year ever has the share of thermal power (essentially coal) dipped to such a low percentage in a 24-hour cycle. The record low happened on Tuesday, according to the daily reports from the Grid Controller of India, the state-run company that manages the national electricity grid of India. Data on national level RE is available only from FY16. 

 

The share of thermal power generation dipped through this week: it was 63 per cent on Monday. RE’s highest share in FY25 had never crossed 13 per cent. The share of hydel power has averaged 15 per cent in this season and that of nuclear at 3 percent.

 

While the dip in the share of coal has of course been made possible because of the heavy monsoon showers across India, the total demand is not too far below the peak summer levels this year. The aggregate demand for power on July 15 was 216.4 GW (gigawatt). With a slightly higher 220-225 GW range, in the April to June quarter the average generation from coal-based power plants was at least 71 per cent of the total. 

 

Aggregate demand for power reached 250 GW in the summer of FY25, but this year the mean has remained near 220GW. It is difficult to predict how the demand for power could pan out in the remaining months since the Indian summer extends even into October at times. But the sharp dip in the share of coal and the rise of RE could soon become a trend.

 

The Union Cabinet on Wednesday raised the upper limit for investments by NTPC Green Energy Limited, without referring back to the government, to Rs 20,000 crore. The sum is more than double its current exemption limit of Rs 7,500 crore.

 

“The enhanced delegation will facilitate accelerated development of renewable projects in the country. This move will also play a vital role in strengthening power infrastructure and ensuring investment in providing reliable, round-the-clock electricity access across the nation,” said a press release by the Press Information Bureau, after the meeting. NTPC plans to generate 60 GW of green power by 2032. NLC, another state-owned company, has also been allowed to make investments of up to Rs 7000 crore in RE without seeking government nod.