India's August Power Output Jumps as Factories Grow

Post by : Monika

Photo: Reuters

India is now using more electricity than it has in months. In August 2025, the country made more power than at any time in the past five months. The increase came mainly from factories working hard again, along with rising use of both coal and clean energy.

Power Use on the Rise

In August, India produced 161.24 billion kilowatt-hours (kWh) of electricity. This was the biggest jump in power generation since March 2025. The main reason behind this rise was a strong recovery in factories, which are producing more goods and therefore using more electricity.

Factories are at the heart of India’s economic growth. When they produce more, they need more power. Even though heavy rainfall from the monsoon slowed activity in some areas, the overall demand for electricity kept rising.

Coal Makes a Comeback

Coal, which is India’s main source of electricity, grew again in August after falling for five months in a row. Coal now makes up 64.8% of the country’s electricity supply. This shows that even though India is moving toward clean energy, coal still plays a very big role in keeping factories and homes powered.

The problem with coal is that it adds pollution and harms the environment. But for now, India relies on it to keep its economy moving.

Clean Energy Keeps Growing

• The good news is that renewable energy is also growing fast. In August, clean energy output grew by 23% compared to last year.
• Hydropower, which uses water to create electricity, increased by 9%.
• Solar and wind power are also rising quickly, thanks to new projects being built across the country.
• This means that even though coal is still dominant, India is making steady progress in using cleaner sources of energy.

Why Factories Are Driving Power Demand

Manufacturing activity in India hit its strongest pace in years during August. When factories are busy, they use more machines, more lights, and more equipment—all of which need power.

This rise in industrial activity was one of the main reasons electricity production reached its highest level in five months. More factories running also means more jobs, more income, and stronger growth for India’s economy.

Strong Push in Solar and Wind

India is adding new clean energy projects at record speed. In the first seven months of 2025 alone, the country added 25.4 gigawatts (GW) of new solar and wind capacity.

This is a record increase and shows how serious India is about growing its clean power sector. By 2030, India has set a target to reach 500 GW of non-fossil fuel capacity, which includes solar, wind, hydropower, and nuclear energy.

The country is moving in the right direction to meet this goal. By investing more in clean energy, India will also reduce its need to import expensive oil and coal from other nations.

What This Means for India

• The rise in power generation shows both challenges and progress for India:
• Factories are growing – This is good for jobs, trade, and economic strength.
• Coal is still important – It keeps supply steady but harms the environment.
• Clean energy is catching up – Solar, wind, and hydro are growing quickly.
• Energy goals are within reach – The 2030 target for clean energy is more realistic now.

India’s future power supply will likely remain a mix of coal and renewables. But every month, clean energy is becoming a bigger part of the picture.

Quick Recap Table

• What Happened    Why It Matters
• Power output rose 4% in August    Factories are busy, demand rising
• Coal share up to 64.8%    Reliable supply but pollutes
• Renewables grew 23% Cleaner future for India
• Hydropower up 9% Stronger clean energy mix
• 25.4 GW solar & wind added in 7 months    On track for 2030 goal

India’s electricity growth in August shows how quickly the country’s energy needs are rising. Coal still plays a central role, but clean energy is growing strongly too. The balance between these two sources will decide how India powers its future.

If factories keep expanding and clean power keeps growing, India will move closer to its 2030 goals while keeping its economy strong.

India electricity use