India's Thermal Power Share to Drop Below 70% in Fiscal 2027: Crisil Ratings

Crisil Ratings projects India's thermal power share in electricity generation will fall below 70% for the first time in fiscal 2027, down from about 75% in fiscal 2025. This decline is attributed to slower power demand growth, influenced by early monsoon and cooler summer, alongside rapid renewable energy capacity additions expected to grow 18-20% annually. Despite lower utilisation rates for coal plants, long-term power purchase agreements and base-load demand support continued investment in thermal power, which remains vital due to renewable intermittency and limited energy storage adoption.