India’s coal power generation falls 3% in 2025 as clean energy growth reshapes electricity mix: CREA

India's energy landscape is undergoing a monumental transformation, moving away from its historical reliance on coal towards a cleaner, more sustainable future. The projection by the Centre for Research on Energy and Clean Air (CREA) that India's coal power generation will fall by 3% in 2025 is not merely a statistic; it signifies a pivotal moment in the nation's energy transition. This shift is primarily driven by the burgeoning growth of clean energy sources, fundamentally reshaping India's electricity mix.

Historically, India, a rapidly developing economy with a vast population, has relied heavily on coal to meet its ever-increasing energy demands. Coal-fired power plants have been the backbone of the nation's electricity grid for decades, fueling industrial growth and providing power to millions. This dependence, while ensuring energy security in the past, has also made India one of the largest emitters of greenhouse gases and a significant contributor to air pollution. Recognizing these challenges and driven by global climate commitments, India has set ambitious targets for renewable energy capacity addition. The National Solar Mission, launched in 2010, was an early policy driver, followed by the ambitious target of 175 GW of renewable energy by 2022, and later, the 'Panchamrit' pledges made at COP26 in Glasgow, including achieving Net Zero emissions by 2070 and increasing non-fossil energy capacity to 500 GW by 2030.

What we are witnessing now is the tangible impact of these policies and investments. The rapid deployment of solar and wind power, coupled with technological advancements and declining costs, has made clean energy increasingly competitive. The CREA projection underscores that this growth is now significant enough to start displacing conventional coal generation. The core message from CREA is a call for policymakers to pivot their focus from building new coal plants to enhancing grid flexibility and cost-effectiveness. This is crucial because integrating intermittent renewable sources like solar and wind requires a robust and flexible grid capable of managing fluctuations in supply and demand.

Several key stakeholders are at the heart of this energy transition. The **Government of India**, through ministries like the Ministry of Power, Ministry of New and Renewable Energy (MNRE), and NITI Aayog, formulates policies, sets targets, and provides regulatory frameworks and incentives. **Public Sector Undertakings (PSUs)** such as NTPC (National Thermal Power Corporation) and Power Grid Corporation of India Ltd. are vital for generation, transmission, and grid stability, increasingly diversifying into renewables. The **Private Sector**, including companies like Adani Green Energy, ReNew Power, and Tata Power, plays a crucial role through investments, project development, and technological innovation. **Regulatory bodies** like the Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs) ensure fair competition, tariff setting, and grid discipline. **International organizations and think tanks** like CREA, IEA, and IRENA provide data, analysis, and advocacy, influencing policy directions. Finally, **citizens and consumers** are stakeholders through their demand patterns and the impact of energy costs and environmental quality on their lives.

This shift holds immense significance for India. **Economically**, it promises enhanced energy security by reducing reliance on imported fossil fuels, stabilizing energy costs in the long run, and attracting significant domestic and foreign investment into the green energy sector, creating new jobs. **Environmentally**, it's a critical step towards mitigating climate change, reducing air pollution, and improving public health. Meeting climate targets bolsters India's standing on the international stage as a responsible global player. **Socially**, it can lead to improved energy access in remote areas and foster a 'just transition' for communities dependent on the coal industry, requiring reskilling and diversification efforts. The focus on grid flexibility is paramount, as a modern, smart grid is essential to manage the variability of renewables and ensure reliable power supply across the nation.

The **constitutional framework** indirectly supports this transition. While there isn't a direct article mandating renewable energy, **Article 48A** of the Directive Principles of State Policy (DPSP) states that the 'State shall endeavour to protect and improve the environment and to safeguard the forests and wild life of the country.' This provides a constitutional imperative for sustainable development. Similarly, **Article 51A(g)**, a Fundamental Duty, enjoins every citizen 'to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures.' The **Electricity Act, 2003**, provides the overarching legal framework for the power sector, facilitating competition, promoting renewable energy, and ensuring grid stability. Policies like the **National Electricity Policy, 2005**, and subsequent amendments, along with the **National Action Plan on Climate Change (NAPCC), 2008**, particularly the National Solar Mission, have been instrumental in guiding India's energy trajectory.

Looking ahead, the future implications are profound. India is poised to become a global leader in renewable energy. However, challenges remain: ensuring grid stability with high renewable penetration, developing robust energy storage solutions (like battery storage and pumped hydro), securing adequate financing, and managing the socio-economic transition for coal-dependent regions and workforces. The emphasis on grid flexibility and smart grid technologies will intensify. This transition is not just about replacing one source with another; it's about fundamentally redesigning India's energy infrastructure and policy, paving the way for a resilient, sustainable, and economically vibrant future.