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Solar, Wind Power Generation Rises 42% as Diesel Use Falls

Key Highlights

  • Solar and wind power generation rose by around 42% year-on-year in August.
  • Solar and wind together generated 35,145 million units, accounting for 19.53% of total power generation.
  • Coal remained the largest source, generating 113,674 million units, or 63.17% of total generation.
  • Diesel based power generation fell from more than 2,000 million units in January 2026 to 1,684 million units in August.
  • Coal India has approved Rs. 2,831.11 crore for a 600 MW solar project at Jalaun Solar Park in Uttar Pradesh.
  • Coal India is targeting 3,000 MW of renewable energy capacity by FY2028.

Kolakata: Solar and wind power generation in India has increased sharply over the past year, while electricity generation from diesel has declined, according to energy generation statistics released by the Ministry of Coal. In August, solar and wind together generated 35,145 million units, accounting for 19.53% of the country’s total power generation, with their output rising around 42% compared with August last year.

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Coal remained the biggest source of electricity in August, generating 113,674 million units, or 63.17% of total generation. Coal based power generation grew 11.23% compared with August last year. Solar and wind, however, recorded a much faster 42% rise during the same period. The figures also show a decline in diesel based generation. Diesel generated power, which stood at more than 2,000 million units in January 2026, fell to 1,684 million units in August.

Coal India Steps Up Solar Investments

Coal India Ltd has also been expanding its renewable energy portfolio as part of its efforts to increase solar power capacity. The company has approved an investment of Rs. 2,831.11 crore for a 600 MW solar power project at Jalaun Solar Park in Uttar Pradesh. Its 200 MW Khavda solar project in Gujarat has already been commissioned. Coal India is also developing renewable capacity through its subsidiaries and has set a target of developing 3,000 MW of renewable energy capacity by FY2028.

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Renewable Energy Gains a Larger Role

The August figures point to a gradual change in the composition of India’s power generation, with solar and wind taking a larger share alongside coal. The decline in diesel based generation also reflects reduced dependence on diesel for electricity generation, although the supplied data does not establish a specific reason for the fall. With Coal India itself investing in large solar projects, the shift towards renewable capacity is now also visible among traditional coal sector companies.

P. Nishi Written by: P. Nishi • Tue, Oct 6th, 2026
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P. Nishi
Written by P. Nishi

P. Nishi is an independent journalist based in Jharkhand. She has been active in journalism for the past seven years and has a strong understanding of business, coal mining, corporate companies and PSUs. She is also invited as a panelist at various business events, where she puts forward her views effectively on business related issues.

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