The Indian Electricity Sector: Constitutional Framework
Source: Central Electricity Authority
The Indian federal structure is seen by scholars as being asymmetric in the distribution of powers. The structure is described as an “indestructible Union of destructible States” as power is concentrated in the Union government. In contrast, the United States, a federal country, is seen as an “indestructible Union of indestructible States”.
The concentration of power has so far not helped the Union government in India to consolidate power over energy policy. The case of reform of the electricity distribution sector is illustrative. Electricity is a concurrent subject under the Indian Constitution, and power over decision-making is shared equally between the Union and State governments. A number of policies initiated by the Union government have not succeeded to the extent expected, on account of little or no State-level ownership and dissonance with State interests, powers and capabilities. Though several reform initiatives have been proposed by the Union government over the last five decades, electricity distribution companies that are under State governments have carried out reforms half-heartedly and often only to avoid financial penalties. Versions of the electricity amendment bill initiated in 2014 continue to face opposition from several State governments and trade unions over clauses that undermine State government authority over electricity distribution.
In the early years after independence, the Union Government did play a large role in influencing the governance of the electricity sector, as it was an important component in nation-building. This changed in the late 1960s when political power diffused to regional parties, which in turn led to State governments gaining control over electricity distribution. In the 1990s, development funding agencies such as the World Bank (WB) strongly influenced the Union government and advised it to take charge of the electricity sector, arrest the financial deterioration of State Electricity Boards (SEBs) and put it on a course of deregulation and liberalisation. In the 2000s, the Union government introduced radical legislation that centralised electricity policy making and put the sector on a course that will lead to market-oriented reform, a process that is currently making progress. Since the 2010s, the Union government has been consolidating power over electricity sector governance, partly driven by international climate-related obligations that require India to decarbonise the electricity sector and partly driven by private interests that dominate traditional fossil-fuel-based power generation and almost completely control renewable energy (RE) based generation. Among the three most important segments of the electricity value chain, generation, transmission and distribution, generation is now dominated by the private sector while transmission is a natural monopoly under Central control. The only segment over which States have some control is electricity distribution. This is likely to change in the coming decade with new legislation that is under discussion.
The seventh schedule of Article 246 of the Indian Constitution allocates responsibility over energy under the Union, State and concurrent lists. Atomic energy and minerals required for its production are unambiguously placed in the Union list (list I, entry 6). Regulation and development of oil fields and mineral oil resources, petroleum and petroleum products, other liquids and substances declared by Parliament by law to be dangerously inflammable are also in the Union list (list I, entry 53). The provision under the Union list for the regulation of mines and minerals covers coal mining (list I, entry 54).
Entry 56 under the Union list that provides for regulation and development of inter-State rivers and river valleys has proved to be contentious as it infringes on State authority to use water flow for the generation of hydropower (list 1, entry 56). The power to impose duties of excise on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel (list I, entry 84), substituted by the one hundred and first amendment act of 2016 [17 (a) (i)] has opened the opportunity to increase Central levies on petroleum products.
List II or the State list covers the power to tax sale of petroleum crude, high speed diesel, motor spirit, natural gas, aviation turbine fuel but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods (list II, entry 54) substituted by the sixth amendment act of the constitution (1956) and further substituted by the one hundredth and first amendment of the constitution in 2016 [17(b)(ii)]. List II also allows State governments to tax the consumption or sale of electricity (List II, entry 53).
The Electricity (Supply) Act of 1948 (EA 1948) provided for generation and distribution by the State and Union governments and also the private sector, but the Union government's 1956 policy resolution promoted a system whereby SEBs built power stations and produced, priced, and distributed electricity. The Central Electricity Authority (CEA), set up under EA 1948, served as the central planner promoting electricity generation and providing financial and technical resources to the State governments. SEBs did not quite meet expectations in addressing the growing demand for electricity, partly because the more electricity they supplied, the more money they lost. The plant load factor (PLF, or the ratio of average power generated by the plant to the maximum power that could have been generated for a given time period) of existing plants was as low as 40-45 percent and power supply met only 65 percent of demand. To address the challenge, a Ministry of Energy was created in 1974 to centrally plan and execute the setting up of large coal and hydropower-based power generating plants and improve SEB finances. Until then, the power sector was administered by the Ministry of Irrigation & Power, as hydropower generation, which dominated power generation, had the twin objectives of irrigation and meeting energy needs.
In 1975, the newly set up Ministry of Energy and the CEA decided that the Union government must step into power generation and initiated the idea of setting up National Thermal Power Corporation (NTPC) and National Hydro Power Corporation (NHPC) to establish large power generating stations that would supply to SEBs. The idea was resisted by both the planning commission and the Ministry of Finance, which eventually yielded on condition that the World Bank should fund the projects. World Bank (WB) funding was secured, and NTPC was set up in 1976 and administratively located in the Ministry of Power. As the planned NTPC plants were completed, the share of the Central sector in power generation grew to about a third of total power generation capacity by the 2000s. Since then, control of generating assets shifted in favour of the private sector. Factors that influenced the dominance of the private sector in generation are legislation, namely the Electricity Act 2003, which in turn was motivated by the dominant global economic narrative conveyed by development funding institutions such as the WB that emphasised the role of markets and private initiative in improving efficiency in electricity generation, transmission, and distribution.
In 2001-02, the States dominated ownership of generating assets (62 percent) and electricity generation (56 percent). In 2024-25, the private sector dominated ownership of generating assets (54 percent) with State government ownership falling to 23 percent and the Central sector accounting for 22 percent. The private sector accounted for over 39 percent of generation, the state sector accounted for over 26 percent and the central sector accounted for over 33 percent of generation. In terms of generation efficiency (electricity generation per unit capacity), the Central sector was the most efficient with a specific generation of 5.8, followed by the state sector with 4.4 and the private sector with 2.8. Control of distribution by the private sector, as envisaged by current policy, could potentially alter capacity use and consequently specific generation.
Demand Growth
Power consumption in the country grew 3.21 percent to 145.91 billion units (BUs) in September as widespread rainfall kept temperatures in check in most parts of the country. The peak power demand met during the month was 229.15 gigawatt (GW), which was significantly shorter than government projections. Power consumption was recorded at 141.36 BUs in September 2024. The tepid increase in power consumption was attributed to widespread rainfall during the month in most parts of the country, which kept temperatures in check, experts said. The peak power demand had touched an all-time high of about 250 GW in May 2024. The previous all-time high peak power demand of 243.27 GW was recorded in September 2023. Experts said the power demand and consumption are likely to be subdued in October as well due moderation in temperature levels, which would reduce use of cooling appliances.
Electricity Trade
The Tripura State Electricity Corporation Ltd (TSECL) will supply 40 megawatt (MW) power to Mizoram during Christmas celebrations, a long tradition of exchange of power between the two neighbouring states. During Durga puja, the Mizoram State Power Corporation arranged 40 MW of power to Tripura to ensure an uninterrupted power supply during the festivities. TSECL will arrange 40 MW power to Mizoram during the Christmas celebrations. The neighbouring state will draw power during December and January. TSECL had a target to supply 363 MW of power to ensure power supply during the four-day-long Durja puja festivities, but the power demand fell to 320 to 290 MW, except 30 September (maha ashtami) when it touched 360 MW.
Discom Reform
Telangana Chief Minister (CM) chaired a high-level meeting with deputy CM and energy department officials to discuss the establishment of a new discom (distribution company) which would be carved out of the existing northern and southern discoms (NPDCL and SPDCL). The aim is to bring electricity supply to the agriculture sector, major and minor lift irrigation projects, and to the drinking water supply within the GHMC limits as well as in the state, under the new discom. As per the energy officials a preliminary project report have been prepared for the establishment of the new discom. The CM asked officials to prepare a complete plan regarding allocation of power purchase agreements (PPAs), and division of assets and dues. The CM instructed officials to ensure that the underground cabling project in the city includes provision for laying other cables alongside power supply cables. Officials were asked to study the underground cabling projects in Bengaluru and other states.
Generation
Adani Power Ltd (APL) has signed a 25-year power supply agreement with Bihar State Power Generation Company Ltd (BSPGCL) to supply 2,400 MW of power to the state. Under the agreement, the India’s largest private sector thermal power generator would supply the proposed power from a greenfield ultra super critical plant to be set up at Pirpainti in Bhagalpur district of Bihar. The development came after a Letter of Award (LoA) by BSPGCL to APL, on behalf of North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL) in August. Adani Power won the project by offering the lowest supply rate at INR6.075 per kWh. The coal linkage for the power plant has been allocated under the SHAKTI Policy of the government of India.
Regulation and Governance
The Rajasthan Electricity Regulatory Commission’s tariff order for FY 2025–26 offers a reduction in electricity costs for small and moderate domestic consumers, but a new regulatory surcharge negates the benefits for large consumers. While households consuming up to 150 units a month will see a 13 percent reduction in their average billing rate, the introduction of a 70 paisa to INR1 per unit surcharge means many consumers in higher consumption slabs will pay more than last year. This surcharge is part of a Supreme Court-mandated effort to recover INR498.42 bn (US$5.54 bn) in discoms' dues, with INR67.01 bn (US$0.74 bn) targeted for recovery this year. Consumer advocates argue the net effect is inflationary, as actual bills rise despite the notional relief. Consumers using up to 300 units will pay INR7.29 a unit, down about 4.5 percent, while those consuming 500 units will see a more modest 3.4 percent dip to INR7.58 per unit. However, these reductions are effectively neutralised by the new regulatory asset surcharge. As per the order, a 70 paisa (INR0.70) per unit surcharge applies to the first 100 units, and INR1 a unit beyond that. After including this surcharge, total bills rise again in many slabs, even exceeding last year’s levels. The regulator has abolished additional fuel surcharge, which used to vary between 10-30 paisa a unit. For instance, a consumer using 350 units will pay INR3087.50, higher than the INR3,017 paid in FY2024–25. Similarly, those using 500 units will pay INR4,287.50, compared to INR4,270 last year.
Delhi government is planning to strengthen the infrastructure for power supply in the Civil Lines area, where key government installations and VVIP residential complexes are located, by setting up a new sub-station and a Battery Energy Storage System (BESS). The initiative aims to bolster contingency arrangements for the VVIP power supply network – also known as the Civil Lines Grids – and reduce dependence on the 400 kV (kilovolt) Mandola substation. Tata Power Delhi Distribution Ltd (TPDDL) has requested a review of the current no objection certificate (NOC) from Delhi Transco Limited (DTL) to provide an alternative 220 kV supply at Timarpur.
According to Goa power ministry although the state has hiked the electricity tariff by 4 percent, the common consumer would face a hike of mere 2 percent. Consumers who use 400 units and more power units will have to pay 4 percent hike. The hike could be around 10 paise per unit. The ministry is of the view that the tarrif hike was inevitable to create infrastructure. The Joint Electricity Regulatory Commission (JERC), which regulates the power sector in Goa and Union territories, approved an average annual power tariff hike of 4 percent for 2025-26, 2026-27, 2027-28, 2028-29 and 2029-30. As per the JERC, the new tariff came into force from 1 October, unless amended or revoked. The average hike of 4 percent approved by the commission is lower than the Goa electricity department’s proposal to hike tariff by 5.59 percent for 2025-26, 5.64 percent for 2026-27, and 4.88 percent for 2027-28. The tariff hike is for fixed as well as energy charges for all categories. The electricity department had not proposed a hike for the years 2028-29 and 2029-30. The power tariff was hiked every year since 2022-23.
The Andhra Pradesh Electricity Regulatory Commission (APERC) ordered the refund of net Fuel & Power Purchase Cost Adjustment (FPPCA) charges amounting to nearly INR9.24 bn (US$102.6 mn) for FY 2024-25 to the retail consumers in 12 Equal Monthly Instalments with effect from the bills payable for November, 2025. According to the APERC it was the first time since the Commission’s formation in 1999 that the payment of ‘true-down’ amounts (relieving the burden imposed in the form of ‘true-up’ charges) had been ordered. As per APERC, the three discoms put together claimed power purchase costs amounting to INR454.76 bn (US$5.05 bn) against iINR345.17 bn that was approved in the retail supply tariff order for 2024-25.
With over INR70 bn (US$778 mn) in unpaid electricity bills posing a major challenge, the Haryana Electricity Regulatory Commission (HERC) has set an agenda to ensure 24-hour power supply at affordable rates. The HERC emphasised that the ultimate goal is providing 24x7 quality power at affordable rates. While appreciating the efficiency gains of utilities, the Commission highlighted the key challenges of reducing AT&C losses, integrating renewable energy, managing peak-hour demand, ensuring revenue recovery, and strengthening consumer grievance redressal mechanisms. Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) reported AT&C (Aggregate Technical and Commercial) losses of 8.75 percent and 11.13 percent, respectively, with UHBVNL pledging to reduce losses further to 9 percent, below HERC’s 10 percent target. Both utilities were lauded for ranking first and second nationally among discoms in FY 2023-24, with scores of 80.8 and 78.9. Under the Mhara Gaon Jagmag Gaon scheme, 3,378 villages under UHBVNL and 2,624 under DHBVNL now receive 24-hour power supply, while over 10,000 pending tube-well connections are scheduled to be cleared by March 2026.
Goa government is set to explore a INR50 billion (bn) (US$555.4 million (mn)) loan from the Japan International Cooperation Agency (JICA) to modernise its power infrastructure. The project will replace aging transmission and distribution equipment, upgrade substations, transformers, and distribution lines to enhance grid reliability and reduce technical losses. A key focus is integrating renewable energy sources such as solar power, aligning with Goa’s commitment to a sustainable, low-carbon energy mix. The initiative will deploy smart meters, automated controls, and real-time monitoring systems to optimise energy distribution and operational efficiency.
Asia Pacific
Malaysian energy firm Sarawak Energy Berhad is said to be exploring the possibility of listing its power generation business on the Malaysian bourse. Sarawak Energy produces most of its power from hydroelectric dams and has recently also expanded into solar power. It also exports power to West Kalimantan.
Thailand is set for a record decline in electricity output this year as mild weather and a slowing economy are reducing demand, government data shows, putting Southeast Asia’s top LNG importer on track for its steepest decline in purchases of the fuel. Power generated and imported to supply the country of over 70 million people fell 5.4 percent annually in the seven months through July, official data showed, nearly twice as steep as the 2.8 percent slump in January-July 2020 due to coronavirus-linked lockdowns. Residential power demand - which accounts for 31 percent of annual consumption - fell over 7 percent in the seven months through July, the steepest decline on record and far outpacing a 2.8 percent decline in industrial and commercial demand, which make up over two-thirds of Thailand's annual electricity use, government data showed.
Africa & Middle East
One of South Africa’s top courts annulled a government permit allowing state utility Eskom to build a large power plant burning natural gas, saying there had not been proper public consultation. The 3,000 MW plant in the east coast port city of Richards Bay is part of government plans to bolster the country’s generation capacity after years of electricity blackouts and pivot away from coal.
North & South America
Major US (United States) electric utility Exelon plans to step up its push to own power plants in its Mid-Atlantic service area next year, where electricity bills are spiking in the face of rising demand and new supplies are slow to be added, CEO (chief executive officer) Calvin Butler said. Exelon’s effort comes as PJM Interconnection, the country’s largest grid providing electricity to over 65 million people in the Midwest to the Mid-Atlantic, faces supply shortfalls amid surging demand from data centers and the electrification of industries like transportation. Chicago-based Exelon said that it was considering its options for building and owning regulated power generation, which electric utilities are legally barred from in about half of US states.
The US President Donald Trump administration launched an effort to speed development of power plants and transmission lines as artificial intelligence (AI) boosts demand, even as it orders fossil fuel plants set to shut for good to keep operating. The Department of Energy (DOE) is requesting information from stakeholders including utilities and regional transmission managers on near-term investment opportunities, readiness of projects, expectations on growth in power demand, and constraints that it says it can address. Trump on his first day back in office in January issued an order declaring an energy emergency as artificial intelligence, data centers, and electric vehicles are boosting power demand for the first time in two decades. The Speed to Power program will help the DOE determine how to use funding programs and national emergency authorities to expand power generation and the grid.
The US has approved a US$130 mn project to construct a high voltage transmission line to ensure a reliable electricity supply to Moldova from European markets, the US embassy in Moldova said. For years, Moldova depended on electricity produced in the separatist region of Transdniestria, which used Russian gas to generate it.
Brazil connected the northernmost state of Roraima to its national electric grid, President Luiz Inacio Lula da Silva said, as he called for greater energy integration in South America. While the system is still being tested, when it is completely implemented Roraima should gain more energy security, as it previously also relied on power from neighbouring Venezuela. Roraima’s connection to the rest of Brazil has been a long time coming. The project for the transmission line began over 14 years ago and its construction suffered delays due to environmental concerns, as it crosses Indigenous lands.
Europe & Russia
The European Union (EU) will prioritise fixing eight power grid bottlenecks, the Commission President said, in an effort to lower the bloc’s uncompetitive energy prices and improve energy security. Earlier this year, Spain and Portugal suffered country-wide blackouts while southeastern Europe, especially Greece, saw power prices skyrocket above the EU average. A key project will be to increase electricity interconnections between the Iberian Peninsula and France. Spain and Portugal asked the Commission to intervene in May.
India refiners to buy more US LPG in 2026, cut Middle East imports
16 October: India plans to cut imports of liquefied petroleum gas (LPG) from the Middle East as its state refiners look to boost purchases from the US (United States), bolstering New Delhi's efforts to secure a broader trade deal with Washington. The state refiners have already informed their traditional suppliers of LPG in Saudi Arabia, United Arab Emirates, Kuwait and Qatar about the likely cut in LPG purchases. The planned size of the LPG supply reduction from the Middle East wasn’t clear, but Reuters reported in July that India aims to source about 10 percent of its cooking gas imports from the US beginning in 2026. During Prime Minister Narendra Modi’s visit to Washington in February, India pledged to raise US energy purchases from US$10 billion to US$25 billion, with both nations targeting US$500 billion in bilateral trade by 2030. India’s trade surplus with the US is a key irritant for President Donald Trump, who has imposed a 50 percent tariff on Indian goods - with 25 percentage points of that total specifically levied to penalise New Delhi for purchases of Russian oil. This year, India has bought some parcels of US LPG, taking advantage of the arbitrage window as China, locked in a tariff war with Washington, slowed purchases.
UP government to distribute two free LPG refills to 18.6 mn women under Ujjwala Yojana
15 October: The Uttar Pradesh (UP) government is set to provide two free LPG (liquefied petroleum gas) refills to women beneficiaries of the Pradhan Mantri Ujjwala Yojana. The announcement will be officially made by Chief Minister (CM) Yogi Adityanath at Lok Bhavan, benefitting 18.6 million households across the state. The scheme, launched in 2016, aims to replace traditional cooking fuels with LPG in rural and economically weaker households. UP leads the country in implementation, with over 18.6 million connections already distributed. The government has allocated INR15 billion for the scheme, with an advance amount of INR3.46 billion already given to oil companies for smooth delivery. The first phase will benefit 12.3 million Aadhaar-verified women. Beneficiaries will buy LPG cylinders at the current market price, and the subsidy will be credited to their Aadhaar-linked bank accounts within 3 to 4 days. The scheme will be implemented through Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL).
India’s Russian oil imports fell 8.4 percent in April to September
14 October: India’s Russian oil imports between April and September fell 8.4 percent on year due to narrower discounts and tighter supplies, with refiners seeking more oil from the Middle East and the United States, according to traders and shipping data. India is also under pressure from Washington, which has doubled tariffs on Indian goods, to reduce Russian oil imports. White House trade adviser Peter Navarro had said India’s purchases of Russian crude were funding Moscow's war in Ukraine. A refiner in India shipped in 1.75 million barrels per day of Russian oil in the first half of this fiscal year that began on 1 April, data showed.
ONGC plans 15 percent cost reduction to prepare for US$60 per barrel crude price
14 October: Oil and Natural Gas Corporation (ONGC) is planning 15 percent reduction in overall costs in two years as the firm sees crude oil prices sliding to US$60 per barrel amid an oversupplied oil market. Planning overall cost reductions of over INR90 billion by financial year 2026-27 (FY27), India’s largest oil and gas explorer expects lower costs on forecast of higher production primarily from Mumbai High field, scaled-up operations at Pipalav supply base and venturing into oil trading business, production director Pankaj Kumar said. The company is undertaking initiatives such as offshore resource optimisation, increasing drilling efficiency, logistics route optimisation, inventory reduction and increasing fuel efficiency, Kumar said. In an effort to unlock over INR10 billion in savings, ONGC is scaling up operations at Pipavav supply base in Gujarat. ONGC said it has been able to arrest the declining trend in its production by registering 1 percent year-on-year (YoY) increase in crude oil output in FY25. In the first half of FY26, the company registered consistent increase in output. ONGC saw an increase of 1.2 percent in total oil production in Q1 of FY26, while a boost of 1.1 percent in oil output in Q2. ONGC’s collaboration with energy major BP to boost output from Mumbai High field will unlock up to $15 billion incremental revenue in 10 years, said Kumar. ONGC targets 44 percent boost in oil production to 65.41 million metric tonnes (mmt) and over 89 percent boost in gas production in a decade’s time. In January 2025, ONGC selected BP as technical Services Provider (TSP) for its Mumbai field. ONGC foresees higher production from 98/2 block in Krishna Godavari basin expecting 12 mmt of oil and 13.5 bcm (billion cubic meters) of gas in next few years. ONGC has engaged BP as subject matter expert to diagnose root-case and identify well interventions to boost production in 98/2 block.
Oil India completes mechanical works on Numaligarh-Siliguri product pipeline upgrade
13 October: Oil India Ltd announced the mechanical completion of its Numaligarh–Siliguri Product Pipeline (NSPL) upgradation project, marking a key step in strengthening petroleum product transport infrastructure across India’s northeast. The NSPL project, completed on 12 October 2025, enhances the capacity of the existing pipeline from 1.77 million metric tonnes per annum (MMTPA) to 5.5 MMTPA, allowing the company to handle increased volumes of refined products from the Numaligarh Refinery in Assam. The pipeline connects the Numaligarh Refinery in Assam to Siliguri in West Bengal, serving as a vital evacuation route for petroleum products from the northeast to other parts of the country. With the upgradation, Oil India expects to significantly reduce transportation bottlenecks and improve supply efficiency.
Over 100 million Indian households use affordable LPG: Puri
12 October: Nearly 106 million Indian households are cooking with affordable LPG, and about 67 million people refuel their vehicles each day, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said. Puri said India is also the fourth-largest LNG importer and a global refining hub, consuming 5.5 million barrels of oil each day. Puri said India’s energy sector continues to grow despite global uncertainty, driven by reforms in oil and gas. The country’s refining capacity has risen from 215 to 258 million metric tonnes per annum (MMTPA), and the Jamnagar refinery has become Asia’s largest, exporting petroleum products to over 100 countries. Under the Open Acreage Licensing Policy (OALP) Round 10, around 2.5 lakh square km (kilometre) has been opened for exploration and production. The number of clearances required for exploration has been reduced from 37 to 18 to improve ease of doing business, Puri said. More than US$1.3 billion has been invested in the upstream segment to enhance oil exploration and production, Puri said. Puri said India has reopened nearly one million square km of previously restricted offshore areas for exploration since 2022. Since 2015, exploration and production (E&P) companies have reported 172 hydrocarbon discoveries, including 62 offshore.
Oil India, NEEPCO ink 15-year pact for Assam gas-based power supply
14 October: Oil India Ltd said it has inked a pact with North Eastern Electric Power Corp (NEEPCO) to supply natural gas to the latter’s power station in Dibrugarh district of Assam. Oil India has signed a long-term Gas Sale and Purchase Agreement (GSPA) with NEEPCO for continued supply of 1.4 million metric standard cubic metres per day (MMSCMD) of natural gas. The gas will be provided to NEEPCO's Assam Gas Based Power Station (AGBPS) at Bokuloni for another 15 years, Oil India said.
Think Gas cuts CNG, PNG rates in Northern India ahead of festive season
13 October: Think Gas, city gas distribution (CGD) companies, announced a reduction in compressed natural gas (CNG) and domestic piped natural gas (DPNG) prices across northern India, effective from 11 October 2025. CNG prices have been lowered by INR2.50 per kilogram, while DPNG rates have dropped by INR3 per standard cubic metre. The move covers key districts including Baghpat in Uttar Pradesh, Begusarai in Bihar, and Barnala, Moga, Kapurthala, Ludhiana, and SBS Nagar in Punjab. The company said the reductions come ahead of the festive season, offering tangible savings to households and businesses while encouraging wider use of cleaner fuels. Think Gas also reiterated that consumers would continue to benefit from its flexible subscription plans, which include nominal registration fees, security deposits and convenient recharge options.
BPCL and RBML join hands to expand CNG network and CGD
11 October: Bharat Petroleum Corporation Limited (BPCL) has formed a strategic alliance with Reliance BP Mobility Limited (RBML) to enhance city gas distribution (CGD) and compressed natural gas (CNG) sales. BPCL said that the collaboration represents a significant advancement in providing access to cleaner and more affordable fuel alternatives throughout India. It supports the Government of India’s ambition to raise the share of natural gas in the nation’s energy mix from the current 6 percent to 15 percent by 2030, highlighting the joint dedication of both organisations to promote sustainable mobility and the adoption of cleaner energy, the company said.
India’s coal import drops marginally in August to 20.58 MT
21 October: India’s coal import dropped by marginal 0.6 percent to 20.58 million tonnes (MT) in the month of August, over the year-ago period. The country’s coal import was 20.70 MT in the corresponding period of the previous fiscal. In the April-August period of FY26, the coal import dropped to 118.07 MT from 121.18 MT a year ago, according to B2B e-commerce solution provider mjunction services data.
Coal block allocation letter constitutes 'property': Delhi HC
17 October: The Delhi High Court (HC) said that a coal block allocation letter constitutes "property" within the meaning of the Prevention of Money Laundering Act (PMLA), adding that "intangible property" has assumed immense legal and commercial significance in modern era. A bench of justices Anil Kshetarpaland and Harish Vaidyanathan Shankar said that the coal block allocation letter was an instrument evidencing a right or interest to obtain a mining lease from the government and extract coal through its utilisation. The bench made the observation while overturning a single-judge judgment of July 2022, which had held that mere allocation of coal block cannot be termed as proceeds of crime under the PMLA.
Coal India output down due to extended monsoon, recovery expected as dry season begins
11 October: The total output in Coal India Limited (CIL) is running behind by close to 3 percent of the previous year’s level due to extended rainfall impacting coal mining at its subsidiaries. As the dry season begins, the company hopes to surpass last year’s output and record year-on-year growth. CIL chairman PM Prasad is optimistic that the current fiscal's target of mining 875 million tonnes will be achieved. Prasad was in the city to attend a function organised by Western Coalfields Limited (WCL), one of the CIL subsidiaries, to mark its golden jubilee. Last year, the CIL with its subsidiaries, on the whole, mined 781 million tonnes of coal. The current year's mining target has been set at 875 million tonnes of coal. However, unprecedented rainfall across the country disturbed the CIL calculations. Although WCL will be among the subsidiaries that will meet the target in the coming quarter, said Prasad. Also, the output deficit is expected to get covered in the coming months as the monsoon has finally receded. The shortage in output will not affect coal availability. If the rains have hit the mining, even the demand for power has been low due to the weather conditions. CIL has tied up with Bharat Heavy Electrical Limited (BHEL) for a surface coal gasification project in Odisha. It has recently acquired a couple of graphite blocks located in Madhya Pradesh and Chhattisgarh. The idea is to develop mines in the next two to three years as part of CIL's diversification plans considering the impact on coal demand due to the emergence of alternative sources of energy. However, no major impact will be seen in at least 10 to 15 years, Prasad said.
Rainfall led to dip in Coal India’s coal output in September: Reddy
9 October: Coal and Mines Minister G Kishan Reddy said that rainfall disrupted mining activity in September, and it led to a decline in production by public sector coal producer CIL (Coal India Ltd). However, the Minister made it clear that there was no shortage of coal in the country. The Minister said that in September CIL’s production declined because of rains.
Coal cargo terminal opens in Brundamal
8 October: A new cargo terminal was inaugurated at Brundamal in Jharsuguda district with the aim to streamline coal transportation from Talabira coal blocks and the Ib-Sardega area. The Gati Shakti Multi-Modal Cargo Terminal (GCT), built on railway land under the East Coast Railway zone, is the first such terminal in the region. Construction of the terminal began on 5 July 2023, and was completed on 4 July this year. It was declared operational for freight on 20 September. The terminal has an annual handling capacity of 4.38 million tonnes. It said that the terminal will contribute significantly to the economic development of Jharsuguda by improving logistics efficiency in the coal-rich Ib Valley region.
Tripura government implemented several steps to improve power transmission system: Power Minister
17 October: Tripura Power Minister Ratan Lal Nath asserted that the government has implemented several steps to improve the transmission system across the northeastern state. Nath said high-tension and low-tension transmission lines have also increased substantially in the last seven years, giving a fillip to the transmission system. Underground cable lines have been laid across 578 kilometre (km), which was only 95 km in 2018, he said. Tripura Power Generation Ltd (TPGL) has borrowed INR9.35 billion from the World Bank to convert the Rokhia Gas Based Power Plant in Sepahijala into a combined cycle power generation unit.
India proposes to open up retail power sector nationwide to private firms
10 October: India plans to open up its retail electricity market for private companies nationwide, ending the dominance of State-run distributors in most states, a draft bill by the federal power ministry showed. The move will allow private companies such as Adani Enterprises, Tata Power, Torrent Power and CESC to strengthen their presence across the country. A similar attempt in 2022 faced opposition from state distribution companies. Only a handful of India’s electricity distribution zones — including the national capital region, Odisha, and industrial states like Maharashtra and Gujarat — are currently privatised as the rules do not specifically provide for it. New Delhi has been pushing power utilities to reduce losses, clean up their balance sheets and upgrade age-old infrastructure. Earlier this year, the country’s most populous state Uttar Pradesh invited bids to privatise two of its four power distribution companies.
RIL’s mega Kutch project to begin solar power generation in H1 FY27
21 October: Reliance Industries Ltd (RIL) has announced that its mega renewable energy project in Kutch, Gujarat, will begin solar power generation during the first half of fiscal year 2026-27 (H1 FY27). The company expects to begin commissioning solar generation units for its captive requirements as part of its green fuels production program in the first half of the next fiscal year. The Kutch mega project will serve as the foundation of the company’s integrated new energy ecosystem, which includes the production of green hydrogen, green ammonia, green methanol as well as sustainable aviation fuel. The project complex will also integrate large-scale solar and battery giga-factories, making it one of the most comprehensive renewable infrastructures globally.
UP plans solar projects worth INR350 bn to reach 22 GW by 2028
20 October: Public and private sector solar projects worth around INR350 billion are expected to come up in Uttar Pradesh (UP) as the state is eyeing solar power capacity of 22,000 megawatt (MW) by 2027-28. These projects include the development of seven solar energy parks of 3,700 MW capacity across the state.
ACME Solar commissions first phase of 100 MW wind project in Gujarat
18 October: ACME Solar Holdings announced commissioning of 28 megawatt (MW) first phase of its 100 MW wind power project in Gujarat. With this, the company’s total operational capacity has increased from 2,890 MW to 2,918 MW, ACME Solar said. The ACME Eco Clean wind project is located at Surendranagar in Gujarat. The project would share the sub-station with ACME Solar's already commissioned 50 MW wind power project.
DRDO signs MoU to develop 300 MW solar projects across its establishments
15 October: Defence Research & Development Organisation (DRDO) signed an MoU (memorandum of understanding) to collaborate on the development of 300 megawatt (MW) capacity of solar-based renewable energy projects across DRDO establishments in India. DRDO said that a MoU was signed with the Solar Energy Corporation of India (SECI), which operates under the Ministry of New and Renewable Energy.
Government panel recommends measures to achieve 100 GW nuclear capacity target
14 October: From legislative amendments to increasing uranium production in India, a government committee has made several recommendations to overcome the challenges facing the 100 gigawatt (GW) nuclear capacity target by 2047. These measures will not only attract private investment in nuclear space but also help with faster clearances required to set up such projects. In February, Ministry of Power had constituted a committee to prepare a 'Road Map for Achieving the goal of 100 GW of Nuclear Capacity by 2047'. The committee has held several rounds of discussions on all aspects of the journey towards 100 GW by 2047 and identified several challenges facing the target and recommended measures needed to mitigate the same. The present nuclear installed capacity in the country is 8.88 GW.
India added record 34.4 GW solar, wind power capacity in 9 months of 2025
13 October: India achieved a record milestone in renewable energy installations, adding nearly 34.4 gigawatt (GW) of new solar and wind capacity during the first nine months of 2025, a 71 percent growth over the capacity addition in the same period last year. The country’s overall renewable energy installed capacity reached 247.3 GW at the end of September. Solar energy contributes approximately 52 percent of the total renewable energy (RE) segment, making it the largest contributor, followed by wind at 21 percent, large hydro at 20 percent, bio power at 5 percent, and small hydro at 2 percent. Between January and September 2025, around 22.5 GW of new utility-scale solar capacity was added in India, a 70 percent jump in installations compared to the first nine months of 2024. Around 50 percent of this capacity was commissioned in the third quarter of 2025 alone. In the nine months through September 2025, India added 5.8 GW of rooftop solar capacity, an 81 percent increase year-on-year.
INR6.4 trillion plan to evacuate 76 GW hydro power from Brahmaputra basin by 2047
13 October: The Central Electricity Authority (CEA) has charted out a INR6.4 trillion transmission plan to evacuate 76 gigawatt (GW) of hydroelectric capacity from the Brahmaputra basin by 2047. The plan covers a total of 69.13 GW of hydro potential available in the Brahmaputra Basin comprising 224 projects, each above 25 MW, and with cumulative installed capacity of 68.7 GW, the CEA report said. As per the plan, phase 1 will cost INR1.91 trillion while INR4.52 trillion will be required for phase 2. The plan includes projects allocated to central public sector companies including NHPC, NEEPCO, and SJVN. Some of the projects are already in the pipeline. Keeping in view the implementation time frame of hydroelectric plants in the Brahmaputra Basin, the phasing of transmission system has been done in two time frames i.e. upto 2035 and beyond 2035, the report said. The Brahmaputra river, which rises in Tibet, China, and flows through India and Bangladesh, holds significant hydro potential in its Indian stretch, particularly in Arunachal Pradesh on the China border. The CEA expects the country’s peak power demand to reach 366 GW by 2032 further reaching up to 575 GW by 2047.
Delhi Metro’s bid to operate on clean energy
13 October: In a step towards adopting cleaner energy, Delhi Metro Rail Corporation (DMRC) has invited bids for an annual supply of 500 MUs of renewable energy. This will be in addition to the 350 MUs already being sourced annually from Rewa Solar Park, and the 40 MUs from rooftop solar plants installed at DMRC’s stations, depots, and staff colonies. DMRC said the process aimed at selecting a ‘solar power developer’ for setting up a grid along with a battery energy storage system (BESS) for this purpose. Currently, renewable energy accounts for about 33 percent of DMRC’s total power usage during operational hours.
India to remain key global wind power export hub through 2030
12 October: India is gearing up to anchor the global wind manufacturing landscape by 2030, driven by a strong mix of domestic firms, Western original equipment manufacturers (OEMs), and a growing presence of Chinese players. The International Energy Agency (IEA) projects that India will remain a major export hub for onshore wind components, underscoring the country's expanding role in the global renewable energy supply chain. For the first time, large-scale supply contracts have been awarded to Chinese manufacturers in India and several other countries. India currently boasts more than 20 gigawatt (GW) of wind turbine manufacturing capacity, catering to both domestic demand and export markets. India aims for 500 GW of non-fossil energy capacity by 2030, including 100 GW from wind (30 GW offshore). Coupled with expanding manufacturing and localisation, the country is set to meet domestic and export demand while strengthening its role in the global clean energy transition.
Telangana mulls German solar tech to strengthen power sector, aid farmers
10 October: Deputy Chief Minister (CM) Mallu Bhatti Vikramarka directed the officials to look into the possibility of integrating German technologies into the solar energy sector in the state. A German delegation met the deputy CM at the Secretariat and informed him that they have come up with certain proposals after learning about the Telangana government’s keen interest in generation and utilisation of solar energy. After looking into the proposals, the deputy CM directed Energy Department Principal Secretary Naveen Mittal to study how the German solar technologies can be integrated into Telangana’s power sector. Deputy CM revealed that the government was exploring ways to supply solar power to both agricultural pump sets and Gruha Jyothi beneficiaries.
Government makes import registration mandatory for certain products used in renewable energy projects
10 October: The government made it mandatory for importers of certain products which are exclusively used for solar energy projects to register on the renewable energy equipment import monitoring system. These products include toughened (tempered) safety glass and photosensitive semiconductor devices, including photovoltaic cells. A similar condition will also apply for imports of certain items having end-use in the area of wind-operated electricity generation. It included towers, bearing housings, gears and gearing. The import policy conditions of these items will come into effect from 1 November, the Directorate General of Foreign Trade (DGFT) said.
Goa CM inaugurates solar power project at SMC
9 October: Goa Chief minister (CM) Pramod Sawant inaugurated a solar power project at the Sanquelim Municipal Council (SMC) premises. He said supporting the call for all municipalities and panchayats to become self-sufficient and use natural resources to reduce the cost of electricity and water, the Sanquelim municipality has successfully launched a solar energy project, which is a laudable initiative towards curtailing power consumption in the state. He said this project will not only provide free electricity to the municipality but also generate revenue from the excess electricity supplied to the grid.
Improved drilling to boost Gulf of Mexico offshore oil output as US onshore growth slows
15 October: Rigs drilling beneath the deep waters of the Gulf of Mexico will drive United States (US) oil industry growth this year and next as onshore production slows due to lower prices and maturing shale fields, and analysts and consultants expect the trend to continue as new technology and friendly regulations attract investment offshore. The offshore oil and gas sector took a backseat to shale in recent years because drilling at sea requires years of construction work and higher upfront investments. Entry costs were lower for shale production and returns quicker, so rapid expansion in shale made the US the world’s top oil producer. Now, technological improvements allow for high-pressure offshore drilling while US President Donald Trump has brought in industry-friendly regulations. With the most prolific shale areas depleting in giant fields like the Permian, shale producers must shift drilling to less productive areas at higher prices. Offshore production accounts for about 15 percent of total US output and is likely to drive growth for the US oil industry this year. The US Energy Information Administration projected US Gulf of Mexico output will rise by 100,000 barrels per day (bpd) to 1.89 million bpd in 2025 after dropping by 70,000 bpd last year. Output is set to climb to 1.96 million bpd in 2026.
US-China trade tensions, OPEC+ output boost could push Brent below US$50: Bank of America
15 October: Bank of America said that if United States (US)-China trade tensions intensify while OPEC+ production ramps up, Brent prices could slip below US$50 a barrel. The bank maintained its Brent forecast at US$61 a barrel for the final quarter of 2025 and US$64 a barrel for the first half of 2026, citing a likely floor around US$55. World oil supply is expected to closely match demand next year as the broader OPEC+ group increases production, OPEC report showed. Meanwhile, the International Energy Agency (IEA) raised its forecast for global oil supply growth this year following OPEC+’s decision to hike production, while lowering its demand growth forecast due to a more challenging economic backdrop. On the trade front, US President Donald Trump said he was considering terminating some trade ties with China, singling out cooking oil. Both countries began imposing tit-for-tat port fees.
World oil market to see huge glut in 2026: IEA
14 October: The world oil market faces an even bigger surplus next year of as much as 4 million barrels per day (bpd) as OPEC+ (Organization of the Petroleum Exporting Countries plus) producers and rivals lift output and demand remains sluggish, the International Energy Agency (IEA) predicted. The latest outlook from the IEA, which advises industrialised countries, expands its prediction of a 2026 surplus from about 3.3 million bpd last month. A surplus of 4 million bpd would be equal to almost 4 percent of world demand, and is much larger than other analysts' predictions. OPEC+ is adding more crude to the market after the OPEC, Russia and other allies decided to unwind some output cuts more rapidly than earlier scheduled. The extra supply is adding to fears of a glut and weighing on oil prices this year. In the IEA’s view, supply is rising far faster than demand. This year, it expects supply to rise by 3.0 million bpd, up from 2.7 million bpd previously. Next year, supply will rise by a further 2.4 million bpd, it said.
Russian oil output continued to rise in September
13 October: Russian oil production rose in September to 9.321 million barrels per day (bpd), up 148,000 bpd from August, as the world’s leading oil producing countries continued to ramp up production, OPEC monthly data showed. Last month’s production was still below Russia’s OPEC+ output quota for September of 9.415 million bpd, however. OPEC+, Russia and some smaller producers, has increased its oil output targets by more than 2.7 million bpd this year, equating to about 2.5 percent of global demand. Deputy Prime Minister Alexander Novak said that Russia had been gradually raising its oil production. OPEC said Kazakhstan’s oil output last month edged down by 26,000 bpd to 1.840 million bpd, still above its quota set by OPEC+ for September of 1.550 million bpd. Kazakhstan has been one of the main laggards in the OPEC+ deal due to an increase in output at the Chevron-led Tengiz oilfield, the country’s largest.
China’s September oil imports rise 3.9 percent on year, drop 4.5 percent from August
13 October: China’s crude oil imports rose 3.9 percent in September from a year earlier as refineries operated at their highest utilisation rates this year. The world’s largest crude importer, China brought in 47.25 million metric tonnes of oil in September, data from the General Administration of Customs showed, or the equivalent of 11.5 million barrels per day (bpd). China’s refinery utilisation rates in September climbed to the year’s highest, with relatively high levels of daily gasoline and diesel output, though supply continued to outpace demand, Chinese consulting firm Oilchem said. For the first nine months of the year, total crude imports were up 2.6 percent at 423 million tonnes (MT), reflecting China’s continued stockpiling activity. Imports of natural gas, including both pipeline gas and liquefied natural gas (LNG), fell 7.8 percent in September to 11.05 MT from a year earlier.
Saudi Aramco can sustain 12 million bpd maximum oil capacity for a year
13 October: Saudi Aramco can sustain crude oil production at 12 million barrels per day (bpd) for a year without incurring additional costs, chief executive officer (CEO) Amin Nasser said. Saudi Arabia holds a substantial share of the world's spare oil capacity - idle supply that can quickly be brought to market. Nasser projected global oil demand would rise by 1.1 million to 1.3 million bpd this year, and by 1.2 million to 1.4 million bpd in 2026. Nasser said Aramco’s extraction costs stood at US$2 per barrel of oil equivalent (boe) for oil and US$1 per boe for gas.
EU agrees to gradually end Russian gas imports by 1 January 2028
20 October: EU Energy Ministers backed a proposal to phase out Russian oil and gas imports to the bloc by January 2028, the Council of the European Union (EU) said. The Ministers approved the plans, which would phase out new Russian gas import contracts from January 2026, existing short-term contracts from June 2026, and long-term contracts in January 2028. Russia currently accounts for 12 percent of EU gas imports, down from 45 percent before its 2022 invasion of Ukraine, with Hungary, France and Belgium among the countries still receiving Russian gas.
North America’s LNG export capacity could more than double by 2029: EIA
16 October: Liquefied natural gas (LNG) exporters in the US (United States) have announced plans to more than double US liquefaction capacity, adding an estimated 13.9 billion cubic feet (bcf) per day by 2029, the US Energy Information Administration (EIA) said. North American export capacity additions will total over 50 percent of expected global additions through 2029, according to the International Energy Agency (IEA).
Guyana not taking any gas development off the table: Vice President
16 October: Guyana’s Vice President said the country will not take any possible gas development off the negotiation table, including Exxon Mobil’s future offshore projects. Exxon’s eighth project, Longtail, is expected to be the first to develop non-associated gas in Guyana, and two more discoveries, Haimara and Pluma, could follow. Exxon said that turning gas into liquefied natural gas (LNG) might not be a priority for the company in some projects. A consortium led by Exxon, which controls all oil and gas output in the South American country, in February began applications to request government approval for Longtail, hoping to have the project authorized next year for a 2030 start-up. Longtail is expected to produce up to 1.5 billion cubic feet per day of natural gas and 290,000 barrels per day of condensate through a floating production facility that will have capacity to export, the group told the government this year. However, Exxon’s gas strategy in Guyana, which could involve LNG, has not been fully designed yet.
Spain’s gas network ready for faster Russian LNG ban
14 October: Spanish gas grid operator Enagas is ready to ban Russian liquefied natural gas (LNG) by 2027 if the EU (European Union) brings forward its phase-out to that date, its CEO Arturo Gonzalo said. The EU is negotiating legal proposals to end its Russian oil and gas imports by January 2028 and sanctions that would ban Russian LNG a year earlier, as Brussels attempts to deprive the Kremlin of revenues to fund its war in Ukraine. Gonzalo said he believed a 2027 ban on Russian LNG was possible from an infrastructure point of view. Gonzalo said gas network operators already use accreditation systems to track the origin of LNG cargoes. Gonzalo said the LNG market was liquid enough to replace Russian volumes.
Shell approves US$2 bn offshore gas project in Nigeria with Sunlink
14 October: Shell has approved the development of an offshore gas project in Nigeria along with its joint venture partner Sunlink Energies, the oil major said, the latest in a series of investments by its Nigerian business. The HI offshore gas project, once completed, will supply 350 million standard cubic feet of gas per day at peak production to Nigeria LNG, which produces and exports liquefied natural gas to global markets, Shell said. The investment, valued at US$2 billion according to the Nigerian government, underscores Shell’s strategy to expand its global LNG business and strengthen its position in Nigeria despite years of challenges and after it divested its Nigerian onshore fields that were beset by spills and theft. State-run oil firm NNPC owns 49 percent of Nigeria LNG, with Shell, at 25.6 percent, the second-biggest shareholder. Other shareholders of the LNG terminal are TotalEnergies and Eni.
Greece seeks to finalise Chevron gas exploration contract this year: Energy Minister
10 October: Greece is working hard to finalise a contract with US (United States) oil major Chevron and its Greek partner Helleniq Energy for energy exploration offshore Greece by the end of the year, Energy Minister Stavros Papastavrou said. Chevron and Greece’s biggest oil refiner Helleniq submitted a joint bid in a Greek tender this year to look for gas in four deep-sea blocks off the Peloponnese peninsula and the island of Crete. Greece, which produces very small volumes of oil and relies on hefty gas imports for power generation and domestic consumption, has been keen to explore for gas and bolster its role as a gas transit route as part of a European Union push to move away from Russian energy after Moscow invaded Ukraine.
Argentina’s YPF, ENI finalize Vaca Muerta LNG deal
10 October: Italy’s Eni and Argentina’s YPF have finalized an engineering agreement on a Vaca Muerta liquefied natural gas (LNG) project, they said. Eni and YPF in June signed an initial accord to cooperate on the development of gas resources from the Vaca Muerta field in Argentina. Eni at that time said the deal would cover production, treatment, transportation and liquefaction of gas through floating units for a total capacity of 12 million metric tonnes per year. YPF CEO (chief executive officer) Horacio Marin said the project will require drilling 800 new wells and aims to double the company’s 2024 gas production. Marin estimated the initiative will need US$25 billion in infrastructure investment and US$15 billion for upstream development.
US grants license for Shell, Trinidad to develop Venezuelan gas field
9 October: The United States (US) government has granted an authorization for energy major Shell and Trinidad and Tobago to develop an offshore gas field in Venezuela close to the maritime border, Trinidad’s attorney general John Jeremie said. The prominent project, aimed to supply Trinidad with Venezuelan gas, has progressed slowly in recent years amid frequent US policy changes towards Venezuela, which has remained under US energy sanctions since 2019. The US State Department in late September said Washington supported Trinidad's Dragon gas proposal and would make sure it would not provide significant benefit to Venezuelan President Nicolas Maduro’s administration. Dragon has proven reserves of some 4.2 trillion cubic feet, making it one of the largest deposits of natural gas in Venezuela and a possible future source of income. With insufficient reserves and output, Trinidad needs the gas to feed its revenue-generating industries, from LNG (liquefied natural gas) to petrochemicals.
US rejects bid to buy 167 MT of coal on public lands for less than a penny per tonne
14 October: Federal officials rejected a company’s bid to acquire 167 million tonnes (MT) of coal on public lands in Montana for less than a penny per tonne, in what would have been the biggest US (United States) government coal sale in more than a decade. The failed sale underscores a continued low appetite for coal among utilities that are turning to cheaper natural gas and renewables such as wind and solar to generate electricity. Emissions from burning coal are a leading driver of climate change, which scientists say is raising sea levels and making weather more extreme. President Donald Trump has made reviving the coal industry a center piece of his agenda to increase US energy production. But economists said Trump’s attempts to boost coal are unlikely to reverse its years long decline.
China’s September coal imports rise to nine-month high
13 October: China’s coal imports rose to a nine-month high in September as rising domestic prices made imported coal more competitive, but shipments remained below year-earlier levels, China’s General Administration of Customs data showed. Coal imports by China, the world’s largest consumer of the fuel, totaled 46 million metric tonnes last month, data showed. Inner Mongolia, China’s largest coal-producing region, ordered 15 mines to close after they exceeded their allotted output. China’s hottest summer since temperature tracking started drove August thermal power generation, mostly from coal, to the highest since at least 1998. For the first nine months of the year, China’s coal imports fell 11 percent to 345.89 million tonnes, data showed.
German probe clears firms of abuse in 2024 power price surges
21 October: German authorities said that an investigation into sharp power price spikes during periods of low renewable output in late 2024 found no evidence of market manipulation by major electricity producers. During those periods, wholesale electricity prices surged above €300 (US$349.86) per megawatt hour, compared with an average of €79 per MWh (megawatt hour) for 2024.
Spain’s power plants are burning more gas since blackout, sending gas demand up
21 October: Spain keeps burning more gas to produce electricity and help keep its power grids stable after a major blackout on 28 April, gas grid operator Enagas said, boosting the country’s overall gas demand. Conventional power plants like gas-fired combined cycle plants provide more stability to the grid's voltage than renewable sources such as wind farms and photovoltaic panels. Gas demand to generate electricity soared almost 37 percent in the first nine months of the year. In addition, Spain exported more natural gas, in particular to neighbouring France, which needed more gas to fill its underground storages and maintain its regasification terminals, the company said. Overall, Spain’s gas demand rose 6.6 percent from the same period last year, reaching the equivalent of 267.6 terawatt hour.
EIA expects heating US homes by electricity to cost more this winter than last year
15 October: United States (US) households heated mainly by electricity will spend about 4 percent more this year to stay warm over the winter due to higher power price forecasts, the Energy Information Administration (EIA) said. Demand growth for electricity from data centers powering the AI boom, and the electrification of manufacturing and other industries like transportation, is widely expected to outpace the addition of new supply, resulting in higher power prices for American customers. Households heated by electricity will pay more this winter even if the weather is around 10 percent warmer than the EIA’s base-case scenario. Electricity consumption is also expected to average about 1 percent lower this winter than last, as prices rise by 5 percent nationwide, the EIA said. The number of homes using electricity as their main fuel is expected to rise 2 percent this winter to over 57 million, while the number of homes using heating oil drops by 4 percent, the EIA said.
Russian strikes knock out power in parts of Ukraine
15 October: Russia struck Ukrainian power infrastructure with drones overnight, knocking out electricity supplies in several areas including in the central Dnipropetrovsk region, the Ukrainian energy ministry said. Power grid operator Ukrenergo said power supplies were limited in seven regions, most in the east. Russia has sharply increased the number and intensity of attacks on the Ukrainian energy system in recent weeks, targeting both power plants and gas facilities.
KEC International bags INR10.6 bn order to set up transmission line in Saudi Arabia
14 October: Infrastructure major KEC International said it has secured a new order worth INR10.64 billion for setting up a transmission line in Saudi Arabia. KEC International Ltd, an RPG Group company, has secured a new order of INR10.64 billion for design, supply and installation of a 380 kilovolt (kV) transmission line in Saudi Arabia, according to the company.
Power Integrations joins work with Nvidia on power supply push
13 October: Power Integrations, a niche chipmaker that provides chips for handling power, said it is working with Nvidia on the artificial intelligence giant’s push to make data centers operate at higher voltages. Nvidia unveiled an effort, with more than a dozen partner companies to convert massive AI data centers - which can consume as much electricity as cities - to distribute internal power using 800 volts of direct current, rather than the more common alternating current. The effort is meant to reduce the losses that come from moving power around inside the data center. Power Integrations, which had US$419 million in revenue in its most recent fiscal year and which supplies chips that handle power for cars and major appliances such as clothing dryers, makes chips out of a material called gallium nitride, known in the industry as "GaN."
Norway’s Equinor drops offshore electrification plans over rising costs
10 October: Equinor has scrapped plans to cut greenhouse gas emissions by connecting several offshore platforms to Norway’s onshore power grid, the company said. The oil and gas sector is Norway’s largest source of climate emissions, accounting for about a quarter of the total. Around 80 percent of industry emissions come from gas turbines powering offshore installations. Equinor would no longer pursue electrification of its Snorre A and B, Heidrun, Aasgard B and Kristin platforms, but still plans to proceed with projects at Grane and Balder fields, it said.
China’s fossil-fuelled power output falls 5.4 percent in September
20 October: China’s fossil-fuelled power generation fell 5.4 percent on the year in September as hydropower output surged, National Bureau of Statistics data showed. Thermal power output, which is mostly from coal with a small amount from natural gas, was 517.5 billion kilowatt hour (kWh) in September, data showed. That was also down from 627.4 billion kWh in August, when thermal output surged to the highest level in decades, boosted by record-breaking summer temperatures and lower hydropower output. China’s thermal power output was down 1.2 percent over the first nine months. Hydropower output in September rose 31.9 percent from the year-earlier level.
Philippines to boost gas power, renewable capacity as demand surges
17 October: Philippines expects higher gas-fired and renewable power generation to fuel a projected 6.6 percent growth in power demand over the next two years, helping reduce dependence on coal, its energy secretary Sharon Garin said. The country will continue to boost gas use for power generation and plans to add more gas-fired capacity to address rising demand, Garin said. Philippines has the most coal-dependent grid in Southeast Asia but is set to register a decline in coal-fired generation for the first time in 17 years in 2025, due mainly to rising gas and hydro output.
Fossil fuels to dominate global energy use past 2050: McKinsey
16 October: Oil, gas and coal will continue to dominate the world’s energy mix well beyond 2050, as soaring electricity demand outpaces the shift to renewables, according to a new McKinsey report. Continued use of fossil fuels poses a major challenge to achieving global net-zero climate targets. Electricity demand will rise mainly due to a projected 20-40 percent increase from the industry and buildings sectors by 2050, according to the report, with North American data centres seen as the biggest contributors to the surge.
Indonesia allows resumption of international carbon trade after 4 years
15 October: Indonesia’s President Prabowo Subianto has issued a new decree to restart international carbon emission trading after a four-year hiatus. The Southeast Asian country issued carbon market rules in 2021 that focused on compliance carbon markets rather than transactions in voluntary markets. The rule effectively put an end to all cross-border carbon emission credit trading, including those generated from big projects like the Katingan Mentaya conservation project. Indonesia said the moratorium allowed the country to give priority to meeting its own greenhouse gas reduction targets rather than sell the reductions overseas.
Record global renewable energy growth remains short of climate target
14 October: A record amount of renewable energy capacity was added globally last year, but that still left countries short of targets towards meeting a United Nations (UN) climate goal to triple capacity by 2030, global renewable groups report showed. More than 100 countries at the COP28 climate summit in Dubai in 2023 agreed to triple renewable energy capacity by 2030 as part of efforts to meet global climate targets. The report by the International Renewable Energy Agency, the Global Renewables Alliance and the COP30 Brazilian Presidency tracks progress towards meeting the goal, and comes ahead of this year’s COP UN climate talks in Brazil next month. A record 582 gigawatt (GW) of renewable capacity was added in 2024, the report showed, representing a 15.1 percent annual growth rate. Meeting the target by 2030 will require annual growth of 16.6 percent from 2025-2030. By the end of 2024, a total of 4,443 GW of renewable energy was installed globally, versus the tripling target of 11,174 GW. According to a report by think-tank Ember, renewable energy sources generated more electricity than coal for the first time in the first half of 2025.
Portuguese utilities firm EDP to accelerate solar, battery projects in Australia after government awards
13 October: Portuguese utilities firm EDP expects to accelerate its solar and battery storage projects in Australia after securing government awards for long-term revenue generation, the company said. Its subsidiary EDP Renewables Australia was awarded generation revenue schemes under the government’s Capacity Investment Scheme (CIS) for two projects that will add more than 1.7 gigawatts of solar and battery storage to the country’s energy mix, EDP said. EDP expects to reach financial close for the Punchs Creek project located in the Toowoomba region of Queensland in 2026 and to commission the plant in early 2029. The project comprises 480 megawatt peak (MWp) of solar and a 400 MW battery energy storage system (BESS). The Merino project, near Goulburn in New South Wales, which includes 530 MWp solar power generation and a 450 MW BESS is expected to reach ready-to-build status in the second half of 2026, the company said. Australia’s CIS aims to accelerate investment in renewable energy generation and clean dispatchable capacity such as battery storage by providing a long-term revenue safety net for projects.
Texas wind speeds in focus as rare fossil fuel output cut in reach
8 October: Texas’s main power generation system is on track for a rare contraction in fossil fuel-fired generation in 2025, as long as output from the state’s massive wind farms rises sharply as expected during the final quarter of the year. During the first nine months of 2025, fossil fuel power generation within the Electric Reliability Council of Texas (ERCOT) - Texas' main power network - is down by 1 percent from the same months in 2024, LSEG data shows. Over the same period, generation from clean energy sources jumped by 14 percent, which has helped lift total ERCOT power generation by 5 percent from a year ago to record highs. ERCOT fossil fuel output has contracted by around 1 percent so far in 2025 while clean power output is up 14 percent. Total generation is up 5 percent from the year before. So far in 2025, Texas solar parks have done most of the heavy lifting in terms of boosting output, with ERCOT solar generation registering a 45 percent surge from the year before. All of ERCOT’s clean energy sources - wind, solar, nuclear and hydro - scaled new highs so far in 2025 as power firms capitalized on the widespread clean energy growth to lift total power generation to a record of just over 15.6 million megawatt hour (MWh). Around 54 percent of ERCOT’s power came from fossil fuels so far in 2025, while a record 46 percent came from clean power sources While solar farms registered the largest year-over-year expansion, wind farms supplied the largest chunk of clean power, of 3.57 million MWh. Solar’s output total was 2.18 million MWh, while nuclear reactors produced 1.3 million MWh and hydro dams just under 21,000 MWh, data shows. -------------------------- This is a weekly publication of the Observer Research Foundation (ORF). It covers current national and international information on energy categorised systematically to add value. The year 2025 is the twenty-second continuous year of publication of the newsletter. The newsletter is registered with the Registrar of News Paper for India under No. DELENG / 2004 / 13485.
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