India is burning more coal as extreme heat and the Iran war squeeze energy supplies
NEW DELHI, INDIA – APRIL 27: People are seen protecting themselves from the sun on a hot summer day on Raisina Hill in New Delhi, India, on April 27, 2026. Delhi-NCR experienced intense heatwave conditions with maximum temperatures reaching between 42 degrees Celsius and 45 degrees Celsius across the region. (Photo: Raj K Raj/Hindustan Times via Getty Images)
Hindustan Times | Hindustan Times | Getty Images
india, world third largest emitter of carbon dioxideMore coal is being burned as energy supply disruptions due to the Iran war and a nationwide heat wave increase demand for dirty fuel.
More than 70 percent of India’s electricity is generated from coal-fired plants, and energy experts told CNBC that share is expected to increase this year.
In February, India announced: more than 52% of total installed power production capacity came from non-fossil fuel sources; the majority came from solar, hydropower and wind. However, coal-fired thermal power plants still have the largest share, accounting for approximately 43% of the total production capacity. dominant energy source.
Coal-fired electricity generation in India rose to 164.9 average gigawatts in April, compared to an average of 160.7 gigawatts last year, according to data shared by S&P Global Energy. According to the data, coal-fired electricity generation increased by an average of 5.6 gigawatts, or 3.5%, respectively, in April.
About 4% of India’s installed power generation capacity is gas-fired and powered by liquefied natural gas; about 60% of this is imported through the Strait of Hormuz.
Higher coal burn
Girish Madan, director of corporate ratings at Fitch Ratings in Singapore, said high liquid natural gas prices also make gas-based power generation economically unsustainable. “So coal-based power needs to share a larger load during these busy summer months,” he added.
Electricity demand in India is rising as temperatures rise amid heatwaves. Data compiled by New Delhi-based air quality and temperature monitoring platform AQI on April 27 showed: 50 of the hottest cities in the world We were in India.
“Heatwave conditions with readings above 40-45 degrees C (Celsius) in several parts of India have increased energy demand,” Andre Lambine, who leads APAC short-term energy and renewable energy research at S&P Global Energy, told CNBC in an email.
He added that while gas-fired generation recovered in the final weeks of April, it “remained an average of 1.5 gigawatts below 2025 levels, underlining that gas continues to be displaced by coal in the energy mix.”
If the El Niño climate impact develops, there could be “a potential 10% year-over-year growth in coal-fired power generation in India,” he said.
India is expected to exposure to relatively higher temperatures This month’s heatwave could result in “heatwave conditions over Northwestern, Central and Western India and parts of the East Coast,” the government said on May 2.
NEW DELHI, INDIA – APRIL 26: People are seen at Humayun’s Tomb in New Delhi, India on a hot day on April 26, 2026.
Hindustan Times | Hindustan Times | Getty Images
Fırat Ergene, a leading Insights analyst in coal, petcoke and cement at Kpler, said that the demand for coal is mainly driven by the energy sector, but other industries are also turning to fossil fuels.
Additional demand is coming from industries such as cement manufacturers, he told CNBC.
Supply of petroleum coke, which is burned as fuel, was disrupted by conflicts in the Middle East and prices rose. Ergene said that this pushed cement companies to use coal instead of petroleum coke.
India last month Promised to reduce emissions intensity In line with the goal of becoming a net zero country by 2070, its economy will shrink by 47% by 2035. India is the world’s third largest emitter of carbon dioxide after China and the USA.
india’s carbon dioxide emissions still risingLast year’s growth rate was the slowest in more than two decades, according to an analysis by the Center for Research on Energy and Clean Air, a policy think tank.
