Wind and Hydro Electricity Generation Outperformed, While Thermal Generation Declined Sharply in 2025

2025 was unique for the power sector in many senses. It saw the highest solar capacity addition and the highest coal capacity addition. There was lower coal and thermal generation along with high renewable energy curtailment. Wind and hydro generation outperformed, while solar underperformed.

Incremental Electricity Installed Capacity Data

India installed 51.7 GW of electricity net generation capacity in 2025 – 6.4 GW of wind, 38 GW of solar, 4 GW of large hydro, 0.6 GW of nuclear and 7.2 GW of coal.

▶ Total added coal capacity was much higher at around 11 GW.

▶ Coal-based capacity of 2825 MW, gas-based capacity of 4400.84 MW and nuclear capacity of 100 MW, which has been under outage for a very long time, have been removed temporarily in April 2025. Out of 2825 MW coal capacity, 830 MW has been retired in May 2025.

Incremental Electricity Generation Data

For the second time (the first time was the COVID-19 year), thermal and coal generation declined.

▶ Thermal generation declined by 52 billion units, while coal generation declined by 44 billion units.

▶ Solar generation increased by 30 GW, while wind generation increased by 22 BU.

▶ Large hydro generation increased by 20.5 BU, while nuclear generation declined by 0.9 BU.

Percentage Incremental Electricity Installed and Generation Capacity

This is where the data gets interesting:

▶ Wind capacity increased by 13%, while electricity generation jumped by 27%.

▶ On the other hand, solar capacity increased by 39%, generating just 22.5% of extra electricity.

▶ Hydropower generated 14% extra electricity from 8.4% added electricity

▶ Coal power generated negative 3.3% generation from 3.3% of added capacity.

▶ Overall, 1.2% of incremental electricity was generated from 11.2% of added capacity.