India's coal dependency in electricity generation fell to its lowest level in a year this July, as renewable energy production reached an all-time high, according to government figures released on July 1.

Renewables accounted for 20% of the country's power mix, with output climbing to 36.25 TWh – 30% jump compared with July last year. In contrast, coal's share dropped to 65.7% from 69% in June, based on Reuters' calculations of daily data from regulator Grid-India. 

The clean-energy boost was underpinned by record solar and wind performance. On July 13, combined output from these sources surpassed 100 GW for the first time, making up 42.8% of total electricity supply – another historical high.

"Most peak demand occurs during daytime, when solar contribution is stronger," noted Manoj Kumar, an analyst at the Centre for Research on Energy and Clean Air (CREA), pointing to the growing role of renewables in meeting consumption. 

Despite the shift, coal-fired generation still rose 12.8% year on year to 119.40 TWh in July. Analysts attribute this to a decline in hydropower output – down for a second consecutive month – and persistent El Nino conditions, which have brought scorching heat and boosted nighttime cooling needs. 

Lower rainfall from El Nino has cut hydro generation sharply, and CREA warned that combined with rising overall power demand, this could create a supply shortfall of nearly 18 TWh, likely pushing coal use even higher in the coming months.

Total electricity generation in July grew 10.4% from a year earlier, reaching 181.79 TWh, the data showed.

The Ministry of Coal reiterated its commitment to sustainable growth, improving coal availability, and cutting import reliance, stating that "the coal sector continues to play a pivotal role in powering India's growth story."