India's Power Pivot as Coal Cracks and Renewables Surge
To be sure, the share of coal in India's power output remains above 70%, but at 70.7% in May, it was the lowest in three years, according to data from federal power grid regulator Grid India reviewed by Reuters.
Natural gas-fired generation and its share in the power mix also slumped in May, contributing to the lower fossil fuel powered electricity in the world's second-biggest coal importer and fourth-largest LNG importer.
At the same time, power generation from renewable energy sources soared to a record high, as did the share of clean energy in the electricity mix.
India's lower coal power generation in May was attributed to weaker demand growth due to a lack of heatwaves compared to May last year and economic headwinds. While coal faltered, renewables picked up the slack as installations soar to records.
Coal-fired power generation slumped by 9.5% in May from a year earlier—the steepest fall since the Covid lockdowns of June 2020, per Grid India's data compiled by Reuters.
Natural gas saw an even more dramatic plunge of 46.5% last month—marking the worst drop since October 2022, when natural gas prices hit record highs in the wake of the Russian invasion of Ukraine.
But renewable energy generation jumped by 17.2% to the highest level ever in May 2025, allowing renewables to grab 15.4% of total power output—the largest share on record.Coal, for its part, saw its share down to 70.7% in May, compared to 74% for the same month last year.
Milder weather with no extreme temperatures surely helped India's greener power generation last month. But surging renewable capacity installations suggest that the country is getting increasingly serious about boosting significantly its clean energy to reduce reliance on fossil fuel imports.
Still, India isn't giving up on coal.
Annual installations of new coal-fired power capacity hit 4 gigawatts (GW) in 2024, flat on the five-year high of 2023 and the highest level since 2019, according to official government figures.
India plans to add as much as 90 GW of coal capacity by 2032 as it looks to meet its surging power demand with reliable baseload electricity.
However, the country is also accelerating renewable energy installations.
In the 2024/2025 financial year ended March 31, 2025, India installed a record high 29.52 GW of renewables capacity, hitting 220.10 GW in total, amid booming solar energy installations. Solar additions jumped to 23.83 GW in FY 2024–25, up from 15.03 GW added in the previous year, government data showed.
India also has 169.40 GW of renewable energy projects under construction and 65.06 GW already tendered.
The country targets to achieve 500 GW of non-fossil fuel power capacity by 2030.
Going forward, India is set to see a surge in power demand and renewable energy build-out in the coming years and decades and could assert itself as a clean energy powerhouse if it boosts investments, U.S.-based clean energy think tank Rocky Mountain Institute (RMI) said in a report last month.
'If the finance catches up, India's transition could save more emissions by midcentury than Europe and North America combined — while charting the way for emerging economies around the world,' the research noted.
Finland-based Centre for Research on Energy and Clean Air (CREA) also noted in a May report India's enormous potential to chart a path beyond coal with record renewable energy installations.
'India currently has 234 GW of renewable energy capacity in the pipeline, which will further reduce pressure on thermal resources as solar continues to dominate during peak hours,' CREA analysts said.
'India's power sector stands at a critical juncture, marked by record-high installed capacity and a rapidly evolving energy mix.'
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.comRead this article on OilPrice.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
22 minutes ago
- Business Upturn
Iran prepared to mine Strait of Hormuz last month amid Israel tensions, say US sources: Report
By Aditya Bhagchandani Published on July 2, 2025, 09:35 IST Iran's military loaded naval mines onto vessels in the Persian Gulf last month, raising concerns within Washington that Tehran was preparing to blockade the Strait of Hormuz following Israeli strikes on Iranian sites, Reuters reported on Wednesday, citing two US officials familiar with the matter. The mine-loading activity, which had not been publicly disclosed earlier, took place shortly after Israel launched a missile attack on Iran on June 13. The US officials, speaking on condition of anonymity due to the sensitive nature of the intelligence, stated that the mines have not been deployed but their movement indicates serious Iranian consideration of blocking the strategic waterway. The Strait of Hormuz is one of the world's most vital shipping lanes, with nearly 20% of global oil and gas shipments passing through it. Any disruption could have sent global energy prices soaring. However, oil prices have fallen by more than 10% since US airstrikes on Iranian nuclear facilities, largely due to relief that shipping through the strait has remained unaffected. Following US airstrikes on June 22 that targeted three key Iranian nuclear sites, Iran's parliament reportedly supported a non-binding resolution to close the strait. However, the final decision rests with Iran's Supreme National Security Council, as noted by Iran's Press TV. Historically, Iran has threatened to block the Strait of Hormuz during periods of heightened geopolitical tension but has never acted on those threats. Reuters reported that it remains unclear whether the mines remain aboard the Iranian vessels or if they have since been removed. US intelligence gathering on the matter likely involved satellite imagery, human intelligence, or a combination of both, the sources added. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
CNBC
25 minutes ago
- CNBC
CNBC's UK Exchange newsletter: UK's millionaire exodus spells more trouble for Labour
For most of this century, the U.K. — and London in particular — has been one of the most popular destinations for the world's super rich to live, work and play in. The U.K.'s approach in this period was best summed-up by Peter Mandelson, a senior minister in Tony Blair and Gordon Brown's Labour governments and now U.K. ambassador to the United States. In 1998 he told a group of Silicon Valley business leaders: "We are intensely relaxed about people getting filthy rich as long as they pay their taxes." However, that is now changing as the wealthy flee a punitive new tax regime, with potentially severe consequences for the country. Arguably this began when Russia invaded Ukraine in 2022 and hundreds of Russian oligarchs left the U.K. after being sanctioned. This in itself was meaningful; the upmarket estate agent Aston Chase estimated that, at the time of the invasion, some 150,000 Russians were living in 'Londongrad' owning £1.1 billion ($1.5 billion) worth of residential property. But that was a specific Russian issue and apart from those who had profited from Russian activity, few mourned their departure. Things began to change more broadly during the run-up to last year's general election, when Jeremy Hunt, then Chancellor of the Exchequer, sought to steal the clothes of his Labour rivals in his March 2024 Budget. He announced that, as of April 2025, the U.K. would abolish so-called 'non-dom' status — a quirk of the tax system dating back to 1799, that allowed wealthy people living in Britain but who did not consider it to be their permanent home, or 'domicile,' to pay U.K. tax only on income earned in, or transferred to, the country. This had been a flagship Labour policy and Labour had made hay from the fact that Akshata Murty, the Indian-born wife of Rishi Sunak, the former prime minister, was one of around 74,000 people who had enjoyed non-dom status in 2022-23 (the latest tax year for which figures are available). Hunt claimed replacing non-dom status with his "simpler, residency-based system" would raise £2.7 billion annually. Crucially, though, he chose not to subject overseas assets placed in offshore trusts by non-doms to U.K. inheritance tax. When Labour won the election, in July last year, newly-appointed Chancellor Rachel Reeves, decided she needed to maintain the party's leadership on the issue. So she abolished the exemption on offshore trusts — potentially exposing the entire global wealth of these individuals to the 40% levy. Overnight it turned the U.K. from one of the most attractive destinations for the world's wealthiest people into one of the most expensive places in the world to die. The upshot has been an exodus of the super rich. It is hard to know precisely how many people have left. The analytics firm New World Wealth and the investment migration advisers Henley & Partners suggested in March this year that Britain had lost a net 10,800 millionaires to migration in 2024, up 157% on 2023 and more than any other country except China. Some dispute those figures, among them Stephen Kinsella, a legal advisor and member of Patriotic Millionaires U.K., a nonpartisan network of British millionaires calling for a wealth tax. He told me recently the numbers were an extrapolation based on the number of people on LinkedIn who had said they had left. He added: "There are about 3 million millionaires in Britain so, even if 10,000 had left, that would be about 0.3% of millionaires." Henley & Partners and New World Wealth published a new report last week predicting that 16,500 millionaires would leave the U.K. this year, more than twice as many had been expected, representing the highest net outflow of high-net-worth individuals from any country since they began tracking millionaire migration 10 years ago. Although the actual numbers will not be known until the U.K. tax authorities crunch the numbers some years hence, there have been plenty of straws in the wind. LonRes, which tracks activity in London's prime property markets, estimates there were 36% fewer transactions involving such homes in May this year than in the same month last year. Meanwhile, Companies House data suggests more than 4,400 directors have left the U.K. in the last year, with departures accelerating in recent months. Among those leaving have been some very high-profile individuals, including Richard Gnodde, the South African-born vice chairman of Goldman Sachs; Nassef Sawiris, Egypt's richest man and co-owner of Aston Villa FC co-owner and John Fredriksen, the Norwegian-born shipping magnate. Lakshmi Mittal, the Indian-born steel billionaire who regularly tops the rankings of Britain's richest people, is said to be weighing up his options and is widely expected to give up his U.K. tax residency. Compounding the problem is that other countries are currently welcoming the rich with open arms. They include Italy, where Gnodde has relocated, which allows wealthy foreigners to pay an annual fee of up to 200,000 euros to exempt their overseas assets and income from tax. The top destination for migrating millionaires though, is the United Arab Emirates, now home to Sawiris and Fredriksen. The latest Henley & Partners/New World Wealth report predicts it will attract a net 9,800 millionaires this year. None of this has yet appeared in the U.K.'s fiscal forecasts. Indeed, the independent Office for Budget Responsibility still assumes Reeves' move will raise £2.7 billion in extra taxes a year by 2028-29. It assumes that between 12%-25% of non-doms would go, which now looks an underestimate. Research published by the consultancy Oxford Economics in September last year, based on a survey of non-doms and their advisors, suggested 63% would leave within two years of the measure being implemented. Survey aside, Oxford Economics expects up to 32% of non-doms to leave and under that scenario, with non-doms having paid £8.9 billion in taxes in 2022-23, the policy would start costing the Treasury money. It is not just the foregone taxes such people would have paid that will hurt. Thousands of jobs in sectors like retail, hospitality, legal services and luxury goods depend on the continued presence in the U.K. of the former non-doms. Scores of charities, cultural and sporting institutions depend on their patronage and philanthropy. There would therefore be a much broader impact than just the fiscal one. Belatedly, the government has realized it has a problem. Unfortunately, it is probably too late to lure back those non-doms who have already gone, along with others who have left due to the imposition of VAT on school fees and changes in agricultural property relief and business property relief that exposed previously exempt estates and businesses to inheritance tax for the first time. However, the government can still act to stop further departures. The most effective thing to do would be to restore the exemption from inheritance tax granted to offshore trusts. This would be problematic for Reeves, since taxing the wealthy more is highly popular among Labour voters, even when — as one poll last weekend suggested — it hurts the public finances. But the Chancellor needs to find some way of backing down without it looking too much like a U-turn. And, with many wealthy people looking to relocate in time for the start of the new school year in September, she should probably not leave it until her autumn of England governor: Businesses tell me they are putting off investment decisions Andrew Bailey, governor of the Bank of England, discusses the U.K.'s economic and macro outlook at the ECB's Forum in Sintra. Europe's big defense push is putting supply chains in a chokepoint. Here's how they aim to break through European defense stocks have become a favorite play among investors, but extra demand has also put supply chains under strain. The CEOs of Thales, Leonardo and Saab told CNBC how they are tackling those challenges. 'F1' producer Jerry Bruckheimer on strong box office debut, impact of streaming and AI on Hollywood Jerry Bruckheimer, 'F1 the Movie' producer, talks to CNBC about the film's strong box office debut, working with Apple, whether a sequel is in the works and the impact of streaming and AI on autos spared under U.S. tariff cut but steel still in question. The U.K.'s trade deal with the U.S. gives British cars a preferential tariff rate over those imported from other parts of the world. But questions over a reduction in tariffs on U.K. metals remain. How BP became a potential takeover target. Market tongues have been wagging for weeks about a potential merger between Britain's oil giants until Shell denied reports that it's in talks to acquire its rival. Here's how BP became a takeover target. Bank of England chief sees downward interest rate trend as UK hunts for growth. BOE Governor Andrew Bailey told CNBC that interest rates should come down gradually as central banks juggle taming inflation and stoking elusive economic U.K.'s FTSE 100 has resumed its march upwards by rising around 0.3% over the past week, but is still 1.2% off from the record high reached in June. In case you missed it, U.K. vehicle manufacturing fell sharply for a fifth straight month in May as headwinds, including U.S. President Donald Trump's trade policy, hit the automotive industry hard. In addition, thieves are also doing their best to make sure there are fewer cars on the road in the U.K. A new study by the Royal United Services Institute said organized criminal gangs are driving the surge in car thefts — where vehicles are being stolen and shipped from the U.K. within 24 hours.
Hamilton Spectator
2 hours ago
- Hamilton Spectator
Once known as ‘Dirty Myrtle,' Myrtle Beach is now the fastest-growing US metro for seniors
A South Carolina beach town once nicknamed 'Dirty Myrtle' because of its rowdy nightclubs and strip joints has become a magnet for retirees in a nation that continues to age. The number of residents age 65 years and older in the Myrtle Beach metropolitan area grew by 6.3% last year, making it the fastest-growing metro area for senior citizens in the U.S., according to population estimates the U.S. Census Bureau released last week. During the 2020s, Myrtle Beach's senior population has grown by more than 22%, also the fastest rate in the United States this decade. Senior citizens now make up more than a quarter of the around 413,000 residents in metro Myrtle Beach, which once was known for being a budget beach destination. The community with a mile-long boardwalk and 200-foot Ferris wheel used to attract biker rallies which the city tried to end in the late 2000s because of the noise, traffic and rowdiness. But now the noisy streets have had to make room for quiet diners and pickleball courts. The COVID-19 pandemic played a role in the area's senior boom as people in such places as Ohio and New York who had been vacationing for years in Myrtle Beach realized they could retire early or work from home anywhere, said Mark Kruea, a longtime public information officer for Myrtle Beach who is now running to be mayor. 'Many people converted that thought into action,' Kruea said. 'The climate's great, taxes are low, there's a wealth of opportunities for recreation, dining and shopping.' A graying United States The U.S. population age 65 and older rose by 3.1% last year, while the population under age 18 decreased by 0.2%. In the past two decades, seniors have increased from 12.4% to 18% of the U.S. population, while the share of children has dropped from 25% to 21.5%, according to the population estimates. Maine, Vermont, and Florida were the only three states where older adults outnumbered children as recently as 2020. But four years later, those states were joined by Delaware, Hawaii, Montana, New Hampshire, Oregon, Pennsylvania, Rhode Island and West Virginia. Maine last year had the oldest median age at 44.8, while Utah's was the youngest at 32.4. Groups that saw the most growth The share of the U.S. population that is Hispanic reached 20% last year for the first time, helped by an annual gain of 1.9 million Hispanics mostly through migration. In pure numbers, the Hispanic population grew the most last year in the New York, Houston and Miami metro areas. When it comes to growth rates, the biggest gains were in smaller metros such as Ocala, Florida; Panama City, Florida; and St. Joseph, Missouri. For Black residents whose growth last year was split between migration and natural increase, the biggest gains were in the Houston, New York and Dallas-Fort Worth metro areas in pure numbers. Bozeman, Montana, and Provo, Utah — metro areas with tiny Black populations to start with — were tops in growth rates. In pure numbers, the New York, Dallas-Fort Worth and Seattle metro areas had the biggest Asian population gains, and the growth came primarily from migration. The largest growth rates were in three metro areas with small Asian populations: Farmington, New Mexico; Bismarck, North Dakota; and Burlington, North Carolina. The non-Hispanic white population in the United States declined slightly last year, but it grew the most in the Nashville, Tennessee; New York and Charlotte, North Carolina metro areas in pure numbers. The biggest growth rates for the white population were in the Myrtle Beach; Daphne-Fairhope, Alabama; and Wilmington, North Carolina metro areas. The decline in the white population was driven by deaths outpacing births. ___ Follow Mike Schneider on the social platform Bluesky: @ .
