Renewable Surge: India's Shift from Coal in May

In a significant shift, India's coal-fired electricity generation plummeted at its steepest rate in five years this May, according to a Reuters analysis of government data. The decline in coal dependency comes as the nation's renewable energy generation surged to unprecedented levels.

Power demand in India fell for the first time since August, driven by economic slowdowns and milder temperatures. Consequently, fossil fuel consumption in generating electricity dropped, with natural gas-fired power output also experiencing a sharp decrease. Despite being the second-largest coal importer, India's lower power demand helped dampen the benchmark prices for both coal and LNG.

Utilities moved towards cleaner, less polluting energy sources. Renewable energy saw a substantial increase, with hydro and nuclear power contributing to the diminished use of fossil fuels. Overall, total electricity generation dropped 5.3% year-on-year, but renewable energy's share in the power mix hit a record high, according to the data.

(With inputs from agencies.)