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India’s Power Shortage Surges as Weak Monsoon Squeezes Hydropower
India is facing a bigger electricity shortage than it had during the summer heat waves.
This is happening partly because weak monsoon rains have reduced the amount of electricity made by dams.
Hydropower production fell by 12% in the first three weeks of September.
Coal plants are making more electricity to fill the gap.
Their output increased by 18% this month.
However, many coal plants are running low on fuel.
About 40% of the plants surveyed had less than one-quarter of the coal they needed.
Officials and analysts say coal shipments and railway wagons must increase to avoid a more serious problem.
Night-time power shortages reached as much as 7.7 gigawatts in September, surpassing April and May levels.
Hydropower generation fell 12% year over year during the first three weeks of September.
Coal-fired generation rose 18% in September as plants met stronger industrial and cooling demand.
Coal inventories fell to their lowest level in about three years by September 21.
Around 40% of 196 surveyed plants held critical coal stocks below one-quarter of required inventories.
- Who
- India’s power sector, including hydropower and coal-fired power plants, is affected; Coal India Ltd and the railways face supply responsibilities.
- What
- Peak electricity shortages have risen above summer levels as weaker hydropower output increases reliance on coal.
- Where
- Across India, including power plants surveyed by the government.
- When
- The shortages were reported on September 24, 2026, with data covering September and the first three weeks of the month.
- Why
- Below-normal monsoon rainfall reduced hydropower generation while industrial demand and cooling needs increased electricity consumption.
Key facts
- September peak shortage
- As much as 7.7 gigawatts at night
- Hydropower change
- Generation fell 12% year over year in the first three weeks of September
- Coal generation change
- Generation rose 18% during September and 11% in the fiscal year so far
- Monsoon rainfall
- Rainfall was 15% below normal during the June-to-September season
- Hydropower capacity share
- About 9% of India’s total generation capacity
- Coal stockpiles
- Lowest level in about three years as of September 21
- Plants with critical stocks
- About 40% of 196 surveyed plants had less than one-quarter of required inventories
Quotes
Rupesh Sankhe
Senior vice-president for research at Elara Capital India Pvt.
“We are not in a crisis yet, but the government needs to act fast to prevent one.”
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