India’s electricity sector recorded slower growth in demand and generation in Q4 FY26, even as renewable capacity expanded rapidly and grid constraints intensified, according to CREA.

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• India’s electricity generation grew by just 3 per cent year-on-year in Q4 FY26, marking the slowest quarterly growth in the past six years.
• Coal remained dominant, contributing about 73 per cent of total electricity generation despite steady expansion in renewable energy capacity and installations.
• Solar generation rose sharply by 24 per cent, while wind, nuclear and hydro also recorded moderate growth during the same period.
• Total installed power capacity reached around 533 GW, with non-fossil fuel sources accounting for more than 53 per cent of the overall capacity.
• Renewable energy dominated new capacity additions, with 16.2 GW added, while thermal and hydro additions remained comparatively much lower during the quarter.
• Peak electricity demand reached 245 GW, with increasing shift of demand towards daytime hours coinciding with solar generation periods across regions.
• Significant renewable curtailment occurred due to transmission bottlenecks and grid inflexibility, particularly affecting solar-rich states like Gujarat.
• Long-term projections indicate peak demand may reach 459 GW by 2035–36, requiring major investments in grid expansion and energy storage systems