Fossil Fuel Power Generation: Global Decline and India’s Energy Transition

1. Context: Fossil Fuel Power Generation

• The global energy system is undergoing a gradual transition away from fossil fuels, but the shift remains uneven and fragile.
• While renewables are expanding rapidly, coal continues to dominate electricity generation, especially in countries like India.

2. Key Insights

• In 2025, fossil fuel-based electricity generation saw a rare decline, with India contributing a reduction of about 52 TWh due to strong renewable growth.
• Globally, fossil electricity generation declined marginally (~0.2%), indicating a possible but not yet stable turning point.
• Renewable energy growth in some periods has matched or exceeded electricity demand growth, reducing reliance on fossil fuels.
• However, this trend is reversible due to rising demand, weather dependence, and continued coal usage.

3. India’s Dependence on Fossil Fuels

• Installed Capacity (2026):
  • Non-fossil: ~52% | Fossil: ~48%
• Actual Electricity Generation:
  • Fossil fuels: ~70–75%
  • Coal alone: ~70%+ (dominant source)
• Key takeaway:
  • Capacity transition has begun, but generation remains coal-dependent, highlighting a slow and structural energy transition.