India’s coal demand hit an all-time high in the 2024 calendar year (CY), on an annual basis, as prolonged heat waves led to a record surge in power demand coupled with an expanding industrial and commercial base.
International Energy Agency’s (IEA) global energy review states “In India, the world’s second-largest coal consumer, demand grew by around 5.5 per cent or 40 million tonnes of coal equivalent (Mtce) in 2024, also reaching a new all-time high.”
Coal provided nearly three-quarters of electricity supply in the world’s third largest energy consumer, complemented by over 20 per cent from renewables, with smaller contributions from nuclear power and natural gas.
Strong demand
Strong economic growth pushed up coal consumption in both the power and industry sectors. Coal power generation, which makes up nearly three-quarters of coal demand in India, grew by 5 per cent Y-o-Y in 2024 mirroring growth in electricity demand, it added.
Steel production grew by 6.3 per cent Y-o-Y in 2024, while coal-based sponge iron production increased by 10 per cent annually and hot metal production rose by 4.4 per cent Y-o-Y, boosting industrial coal use.
“In 2024, global coal power generation grew by nearly 1 per cent Y-o-Y to 10,700 terawatt-hour (TWh), a new high. A key driver was record temperatures, which pushed up electricity demand for cooling (especially with intense heat waves in China and India),” the IEA pointed out.
CO2 emissions
India’s energy-related CO2 emissions rose by 5.3 per cent Y-o-Y in 2024, the highest rate among major economies, driven by rapid economic growth, infrastructure development and surging energy demand, the report pointed out.
“Severe and prolonged heat waves further boosted electricity consumption, which rose by 5 per cent (Y-o-Y), straining power systems despite record-breaking additions of nearly 35 gigawatts (GW) in solar PV and wind capacity. However, the growth in renewables could not keep pace with rising demand, leaving fossil fuels dominant in the electricity mix,” it added.
In India, intense heat waves in May and June (2024) triggered a sharp rise in electricity demand for cooling, placing significant strain on the country’s power grid.
To meet this surge in demand, higher fossil fuel usage led to an additional 50 Mt of CO₂ emissions—making up one-third of India’s total emissions increase in 2024, the IEA said.