According to an analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief, coal power generation in India fell by approximately 3% year-on-year, equal to a reduction of 57 TWh. China’s coal-fired electricity output decreased by 1.6%, or 58 TWh, over the same period.  

The main contribution to the reduction in coal power output is the rapid expansion of renewable energy infrastructure, particularly solar and wind. According to Lauri Myllyvirta, Lead Analyst at CREA, both China and India set new records for renewable capacity additions for 2025 when China added more than 300 GW of solar and 100 GW of wind power, and India added 35 GW of solar, 6 GW of wind and 3.5 GW of hydropower.

In China, solar power growth was supported by investments and technological advancements that have lowered costs. India’s renewable sector expansion was driven by government targets and policy incentives aimed at increasing clean energy.  

This surge in renewables has been enough to offset the growth in electricity demand which rose by about 5% in China in 2025 but remained largely flat in India. As a result, the increased availability of clean power reduced the reliance on coal-fired generation.

Despite the decline in coal generation, both countries continue to add new coal capacity. If all the authorised and under-construction plants become operational, coal power capacity could increase by 28% in China and 23% in India, according to CREA figures. This expansion may reduce utilisation rates of existing coal plants, increasing operational costs and potentially raising electricity prices. Long-term emissions reductions will depend on slowing new coal capacity additions and accelerating retirements, according to the authors of the analysis.

Both China and India face challenges in updating power market structures originally designed for coal-based generation. For example, enhancing electricity grid flexibility is important for accommodating fluctuating renewable output and maintaining system reliability.

China and India’s power sectors accounted for approximately 93% of the rise in global CO₂ emissions from 2015 to 2024, with China responsible for 78% and India 16%. Therefore, recent decline in coal power generation in these countries is a great milestone for global climate efforts, the authors state, although challenges still remain. Grid modernisation and market reforms are required to incorporate higher shares of renewables effectively. Policy uncertainties may temporarily slow progress, and the continued construction of new coal plants poses risks to long-term emissions goals.