What the Report Reveals
A new analysis by Global Energy Monitor (GEM), an international non-profit that tracks fossil fuel projects, has put India's energy plans under the spotlight. The report, released in August 2026, found that proposed new coal mining projects surged globally
in 2025, representing an 11% year-on-year increase in planned capacity. This revival was driven almost entirely by India, where proposed mining capacity nearly doubled, primarily in the states of Odisha and Jharkhand. This builds on earlier GEM findings that India proposed 38.4 gigawatts (GW) of new coal-fired power plants in 2024, the highest figure since 2015. Together, these proposals signal a renewed focus on coal, even as much of the world pledges to move away from it.
The Engine: Soaring Energy Demand
The primary reason for this coal push is India's immense and rapidly growing appetite for energy. The country's economy is expanding, urbanisation is accelerating, and rising incomes are putting more appliances in homes. Extreme weather, particularly more frequent and intense heatwaves, is causing a dramatic spike in the use of air conditioning, pushing electricity demand to new heights. Peak power demand, which crossed 250 GW in 2024, is projected to exceed 270 GW during the summer of 2026. For policymakers, ensuring a stable and uninterrupted power supply to keep the economy running and citizens cool is a matter of national priority. Coal, being a domestically abundant and dispatchable power source, is seen as the most reliable way to provide this baseload energy and guarantee grid stability.
The Green Energy Paradox
This renewed interest in coal seems to clash with India's impressive track record in renewable energy. The country has made huge strides, crossing 300 GW of installed non-fossil fuel capacity by mid-2026, including hydro and nuclear power. This means over half of India's total installed power capacity now comes from non-fossil sources, a significant milestone. However, there is a crucial difference between installed capacity and actual electricity generation. Solar and wind power are intermittent—they only produce electricity when the sun shines or the wind blows. Coal, on the other hand, can generate power 24/7. Until battery storage technology becomes widespread and affordable enough to store renewable energy for use during peak evening hours or on cloudy days, coal remains essential for meeting nearly 75% of India's actual electricity consumption.
Balancing Security and Sustainability
The government's strategy is a pragmatic, if controversial, balancing act. By boosting domestic coal production, the aim is to ensure energy security and reduce dependence on costly imported coal, saving valuable foreign exchange. Officials argue that this dual approach—expanding renewables while maintaining a strong coal backbone—is necessary for a country at India's stage of development. However, this path comes with significant environmental costs. A larger coal fleet complicates India's efforts to reduce air pollution and meet its long-term climate goals, including its pledge to achieve net-zero emissions by 2070. The decision highlights the fundamental trilemma facing India: how to provide energy that is affordable, reliable, and sustainable all at once.
