India's coal-fired power generation in June reached its highest level since November 2023.

India's coal-fired power generation reached a near three-year peak in June, driven by higher cooling demands due to an extended heatwave and lower-than-average monsoon rainfall, according to government data.

The total electricity production in India for June increased by 10.4% compared to the previous year, amounting to 178.31 billion kilowatt-hours, as per Reuters' analysis of daily figures from the federal grid regulator, Grid-India.

Coal-fired power output rose roughly 14% year-on-year to 120.20 billion kWh in June, marking the highest level since November 2023, the data indicated.

Last month was recorded as the fifth driest June since 1901, influenced by a strong El Niño pattern that produced intense heat, leading to increased cooling demand, according to meteorological data. El Niño is a climate phenomenon linked to warming ocean waters in the Pacific that typically results in hot, dry weather across South and Southeast Asia.

The demand for coal power has surged over the past two months to fulfill evening air-conditioning needs, as limitations in battery storage for solar energy restrict solar usage during those hours, despite a general increase in India's renewable energy output.

June saw the renewable energy share in India's power mix reach a record high of 19%, the data revealed. Overall renewable generation increased to 33.81 billion kWh in June, up 23% from the same month last year.

Despite the addition of new renewable sources, thermal power generation is expected to rise this fiscal year to accommodate the heightened electricity demand during peak consumption times, according to Ankit Jain, vice president and co-group head for corporate ratings at ICRA.

The reduction in monsoon rainfall also led to a decline in hydropower output in June, which fell by 24.4% from the previous year to 14 billion kWh, marking the steepest drop since February 2024.

Generation from natural gas sources decreased by 30.1% in June compared to a year ago, the data showed.

In 2025, India's coal power generation experienced its first annual decline since the COVID-19 lockdowns of 2020.