Power generation up 11% y-o-y in Q2: CREA

NEW DELHI: India’s electricity generation rose 11% year-on-year to 536 billion units (BU) in the second quarter of 2026-27, while peak power demand touched a record 270 GW, 18% higher than the peak recorded in the corresponding period last year.Despite the surge in demand, coal-fired power plants were not operating at full capacity, pointing to significant headroom in the existing fleet even as renewable generation continued to expand, according to a report by Centre for Research on Energy and Clean Air (CREA).Renewable electricity generation, excluding large hydropower, crossed 100 BU for the first time in a quarter. Solar generation rose 39% year-on-year to 51 BU, while wind generation increased 29% to 45 BU. Solar accounted for 10% of total electricity generation for the first time, setting a daily record of 705 million units (MU) on Sept 30.Combined generation from non-fossil sources, including renewables, large hydropower and nuclear, reached a record 177 BU, up from 163 BU a year earlier. Thermal power continued to dominate the generation mix, accounting for 64% of total electricity generation.Coal-fired power plant utilisation fell to 68% in Q2 from 73% in the first quarter, while coal despatches to power plants declined from 74 million tonnes in May to 66 million tonnes in Aug, the lowest level recorded in 2026. CREA said the figures indicated that the coal fleet had substantial unused capacity even during periods of record electricity demand.Large hydropower generation rose to 60 BU from 39 BU in the first quarter, but remained 20% below the year-earlier level, as deficient rainfall amid El Niño conditions led to a shortfall.India’s installed power capacity stood at 555 GW in Aug, with non-fossil sources accounting for around 55% of capacity. CREA said the pipeline of battery and pumped-hydro storage projects had reached around 290 GWh, though only 9.1 GWh was operational.“As solar increasingly meets daytime electricity demand and storage helps meet evening and night-time peaks, new thermal capacity should be assessed against expected demand, renewable generation and storage availability. This will help avoid building capacity that could remain underutilised as India’s power system evolves,” said Manoj Kumar, India analyst at CREA.You use AI every day. Now get your AI Quotient. Take the AIQ test.