In Short : Renewable energy generation in India rose to 17% of total electricity in May, up from 13–14% last year, according to HSBC. Declining demand and increased capacity contributed to this growth, reducing coal plant load factors. Solar and wind displaced thermal power, while battery storage incentives and transmission charge waivers are further boosting renewable integration across the energy sector.
In Detail : Renewable energy generation in India saw a significant rise in May, reaching 17% of the total electricity produced, according to a report by HSBC. This marks an increase from the 13–14% share recorded during the same month last year, highlighting the country’s accelerating shift towards cleaner energy sources.
The growth in renewable output is attributed to a combination of factors, including increased capacity addition and a drop in overall electricity demand due to cooler weather and early monsoon rains. As a result, coal-fired power generation was pushed to the background, with coal plant load factors falling to 65% from 72% a year earlier.
India’s power demand and peak demand declined by 4% and 7% respectively in May. This lower demand allowed renewables, which are granted must-run status, to take a larger share of the grid, displacing conventional thermal power in the process.
Renewable energy output in May touched a record high of 24.7 billion kilowatt-hours, accounting for 15.4% of electricity generated. Contributions from hydropower and nuclear also increased, while gas-based power generation fell sharply by 46.5%, according to supporting reports from Reuters.
HSBC highlighted that India had built up substantial coal reserves, with 61 million tonnes stocked—enough to meet 21 days of demand. Additionally, on May 25, solar power prices during peak sunlight hours dropped to zero, underlining how renewables are reshaping electricity market dynamics.
Government policies are further accelerating this transition. Recent measures include ₹5,400 crore in viability gap funding for 30 GWh of battery storage and waivers on transmission charges for pumped and co-located storage projects through 2028. While coal still contributes around 71% of power generation, the trend indicates India is steadily moving toward its clean energy targets.
