3 min readNew DelhiJul 3, 2026 02:00 AM IST The country is leaning more heavily on coal to meet surging electricity demand this summer, as rainfall deficit has squeezed hydropower output. Hydro generation fell 19.5% year-on-year (y-o-y) to 13,361.96 million units (MU) in June, down from 16,593.07 MU a year earlier, according to data from the National Power Portal. At the same time, coal-fired generation climbed to 117,677.69 MU in June 2026, the highest for the month in the past three years. That was 13.9% higher than June 2025, 3.9% above June 2024, and 14% higher than June 2023. Coal-fired generation increased amid a 40% rainfall deficit in June, while the India Meteorological Department (IMD) has forecast below-normal rainfall for July as well. The weak monsoon has also kept electricity demand elevated for cooling and irrigation, pushing peak power demand to 264.76 gigawatts (GW) in June. This year’s situation stands in contrast to last year, when hydroelectric power played a crucial role in meeting evening peak demand during summer when solar output drops. However, rainfall …