Source: Central Electricity Authority
The three key influences on the energy budget 2026–27 are the energy transition, quest for energy independence (reduction of imported energy leading to self-reliance) and the pursuit of increasing energy supply for development. Support for non-fossil fuels (decentralised solar deployment, domestic manufacturing localisation, energy storage, nuclear baseload capacity) and incentives for reduction of emissions from fossil fuels dominate allocations. Modest fiscal outlays complement targeted duty exemptions for execution efficiency, grid integration, and supply-chain resilience.
The Ministry of New and Renewable Energy (MNRE) received INR329.15 billion in 2026–27, a 30 percent increase over INR253.01 billion for 2025–26, the highest-ever allocation for the sector. PM Surya Ghar Muft Bijli Yojana (rooftop solar for 10 million households) was allocated INR220 billion, an increase of INR50 billion. According to the government, as of 2025, about 2.4 million installations have been made, which is 24 percent of the target.
The outlay for grid-connected solar was increased to INR17.75 billion (78 percent increase), supporting utility-scale projects. Allocation for PM-KUSUM (solar for agriculture pumps) was maintained at INR50 billion, focused on pump solarisation. Allocations for wind (INR5 billion) and large-scale hydro remain static, risking slower progress in those segments. The budget does not introduce new transmission funding or RPO (renewable purchase obligation) enforcement mechanisms beyond existing waivers.
While allocations may suggest a boost for the energy transition, historical utilisation rates, often 5–22 percent below budgeted levels for MNRE schemes, highlight persistent implementation bottlenecks that include, but are not limited to, land acquisition, access to finance, discom liquidity, and regulatory delays. The budget allocated INR5.99 billion to green energy corridors. As over 10 GW of hybrid capacity is expected in 2026–27, the adequacy of interstate transmission could mean a non-fiscal risk to project returns.
The INR10 billion viability gap funding (VGF) for battery energy storage systems (BESS) was a nine-fold increase from the previous year. With the enhanced VGF and the removal of basic customs duty (BCD) on capital goods for battery manufacturing, storage-linked tariffs could fall by 2027. About 10 GW BESS are under construction, and 20 GW have been tendered against a 4,000 GWh (or 1000 GW/4 hours) target by 2030–31. The exemption of basic customs duty (BCD) on sodium antimonate will reduce input costs for domestic glass manufacturers supplying to solar manufacturers. The budget also extends exemptions on BCD for lithium-ion cells, cobalt powder, lithium-ion battery scrap and waste, and equipment for BESS. Additionally, duty relief has been announced for rare-earth permanent magnets essential to wind turbine generators and electric motors.
Allocation for the national green hydrogen mission doubled to INR6 billion to push towards the goal of developing India as a global export hub for green ammonia and low-emission hydrogen. However, green hydrogen funding remains modest relative to the 5 MMT production target by 2030. Despite emphasis on production-linked incentives and pilot projects to address persistent challenges of high costs, water availability, and storage logistics constrain the growth of green hydrogen production.
The 2026 budget proposal for an international risk guarantee fund (IRGF), which would provide partial credit guarantees to lenders extending finance to large grid-scale clean energy projects. Private lenders often apply prohibitive risk premiums to long-tenor infrastructure loans, particularly for projects involving new technology. By absorbing a portion of the downside risk, the guarantee fund can substantially reduce the cost of capital for clean energy developers, improving project viability and accelerating deployment. This could potentially reduce off-taker risk and also open lower-cost debt for developers, which could mean a lower bid tariff in future auctions. However, mobilising private capital through green bonds, multilateral finance, and public-private partnerships will continue to remain essential.
The dedicated nuclear energy mission was given an outlay of INR200 billion to develop at least five indigenously designed small modular reactors (SMRs) by 2033. This is in addition to the allocation for the Department of Atomic Energy. The existing BCD exemption on nuclear project imports is extended until 2035 and broadened to all plants irrespective of capacity. Current nuclear capacity stands at 8.8 GW (2–3 percent of generation), with a long-term vision of 100 GW by 2047.
Rare-earth corridors linking Odisha, Kerala, Andhra Pradesh, and Tamil Nadu may secure supply for wind turbines, electric vehicle motors, and solar components. This initiative, part of the rare earth permanent magnets scheme, could initiate domestic capacity investment in processing and manufacturing permanent magnets—a component for which India is currently 100 percent import-dependent, consuming 4,000–5,000 tonnes annually. Duty rationalisations and critical minerals strategy could potentially improve self-reliance, lower solar module costs and accelerate 35–46 GW annual non-fossil additions needed through 2030.
The allocation for the bio-energy programme has been set at INR2.75 billion, down from INR3.25 billion in 2025–26. Allocations for pollution control and afforestation remain modest at INR10.91 billion and a mere INR25 million, respectively.
Among the most significant institutional proposals of the 2026–27 budget is the announced restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). These two public sector non-banking financial companies are the primary institutional lenders to India's power sector, with a combined loan book of over INR430 billion in renewable energy financing alone—up from INR360 billion in the prior year. The proposed restructuring aims to enhance their credit flow mechanisms for transmission and distribution modernisation, improve their capital efficiency, and position them to more effectively mobilise private capital alongside public financing.
Most analysts, including those whose intelligence is supposedly artificial, conclude that the budget is a turning point for India’s clean energy future or that it would power the energy transition. However, the increase in funding support may be adding low-emission energy supply capacity to meet incremental growth in energy demand. Low-emission energy generation capacity does not replace existing fossil fuel generation; it simply contributes to the supply to meet demands from a growing economy or rising population. While this may improve the emission intensity of the energy mix, absolute emissions may stay the same or continue to rise because fossil fuel plants are meeting a major share of the energy demand. For actual energy substitution (or displacement), low-emission energy sources must actively force the retirement or reduction of existing fossil fuel generation. For an energy system to reach net zero, it must move from a phase of addition to substitution.
Solar Manufacturing
Reliance Group’s arm Reliance Infrastructure is setting up one of India’s most advanced, fully integrated solar manufacturing ecosystems spanning ingots, wafers, cells and modules. According to Reliance Infrastructure, the manufacturing facility will have next-gen technology. The facility will bridge large demand-supply gap as India will need 55–60 gigawatt (GW) of solar modules annually by 2030, while upstream capacity remains significantly short.
Andhra Pradesh is set to get India’s first integrated 6 GW solar ingot and wafer manufacturing facility, following the approval of the project by the State Investment Promotion Board (SIPB). The proposal, submitted by ReNew Photovoltaics, a subsidiary of ReNew Energy Global Plc., will be placed before the Cabinet for final clearance. The greenfield plant will come up at Rambilli in Anakapalle district with an investment of INR39.90 billion (US$0.43 bn). Spread across 130-140 acres, the unit will manufacture ingots and wafers, which are key components used in producing solar cells and modules. The project is part of the Government of India’s Production Linked Incentive (PLI) programme aimed at strengthening domestic solar components manufacturing, and reducing dependence on imports. These projects include a 6 GW ingot-wafer facility, a 2 GW pumped hydro storage project, a 300 KTPA green ammonia plant, and 5 GW hybrid renewable projects combining wind, solar and Battery Energy Storage System (BESS). With the latest approvals, the company’s total proposed investments in Andhra Pradesh now stand at INR820 bn (US$8.93 bn), including commitments made in May 2025. Construction of the ingot-wafer plant is expected to be completed by March 2026, with commercial operations targeted for January 2028.
RE Policy and Market Trends
Goa government is contemplating taking up three villages under the Net-Positive Panchayat model to make them energy self-sufficient, based on their distinct characteristics. Caurem Pirla is rural, Harvalem is developing and Calangute is urban. The Goa Energy Development Authority has identified Caurem Pirla panchayat for a community-owned eco-tourism model, Harvalem panchayat for a net-positive village model and Calangute panchayat for a green tourism zone. Considering the rural setting and ecological sensitivity of Caurem Pirla, state government is exploring whether the village could be developed as a low-impact eco-tourism model, integrated with clean energy and livelihood generation. State government may consider interventions like the promotion of solar-powered eco-homestays using existing residential structures, if possible supported under applicable central schemes. Government may introduce non-fossil fuel mobility options such as e-cycles or electric buggies for internal tourist movement.
The year 2025 has become an important milestone in India’s energy transition, as the country achieved 50 percent non-fossil installed electricity capacity five years ahead of its Nationally Determined Contribution (NDC) target. According to the latest data, against a target of 500 GW of non-fossil capacity by 2030, India’s combined installed and pipeline non-fossil capacity reached around 507 GW in 2025. India’s total non-fossil capacity has increased from 81 GW to 263 GW, reflecting a growth of 225 percent over the years. Since 2014, solar energy has seen the fastest expansion, rising sharply from 2.8 GW to 133 GW, an increase of 4,550 percent. This growth has been driven by large utility-scale solar projects, rooftop solar installations, and hybrid renewable tenders. Government schemes such as the PM Surya Ghar: Muft Bijli Yojana, which aims to provide rooftop solar connections to 10 million households, have also played a major role in boosting solar capacity. Wind energy has grown steadily, with installed capacity increasing from about 21 GW to 54 GW, a rise of 155 percent since 2014. Biopower capacity has expanded from 8.1 GW to 12 GW, registering a growth of 42 percent, supported by the use of agricultural waste and other organic materials for power generation. India has emerged as the third-largest contributor to global solar capacity additions between 2022 and 2024, adding around 46 GW of solar power during this period. Along with capacity growth, India has seen major progress in renewable energy manufacturing in the year.
The Comptroller and Auditor General of India (CAG) has pulled up Coal India Ltd (CIL) for delays in development of the targeted 3,000 megawatt (MW) solar power projects, stating that the coal behemoth and its arms had installed only 122.492 MW of solar capacity by December 2024, which is just 4.08 percent of the target. The CAG has asked CIL to execute the projects on a fast-track basis to become a Net Zero energy company. Work orders had been issued only for 692.50 MW of ground-mounted projects and 34.56 MW of rooftop projects till December 2024, with anticipated commissioning by 2027-28. The Centre, in 2017, entrusted CIL with the task of developing 3,000 MW of solar power by 2024.
Roof Top /Distributed Solar Projects
According to the Maharashtra State Electricity Distribution Company Ltd (MSEDCL), Maharashtra has installed 45,911 off-grid solar agricultural pumps in 30 days, earning recognition from Guinness World Records. The deployment makes Maharashtra the fastest state in India to roll out solar pumps and places it second globally after China in the scale and speed of installations achieved by a single administrative region. The record reflects MSEDCL’s push to expand clean energy use in agriculture, improve irrigation access and support farmer incomes through programmes under the PM-KUSUM (Component B) scheme and the state’s Magel Tyala Saur Krushi Pump Yojana. The record underscores Maharashtra’s national lead in solar irrigation and supports “clean, farmer-centric irrigation”. The initiative would strengthen irrigation security, boost productivity and reduce dependence on conventional energy. The state government and MSEDCL will continue to expand solar irrigation and support India’s wider clean energy transition.
Uthalpeth, a village in Mul taluka of Chandrapur district, has become Maharashtra’s largest fully solar-powered village, with solar panels installed on all 180 households. It is also Vidarbha's second village to achieve 100 percent solar power after Chichghat-Rathi village in Wardha district. Manyachiwadi in Satara district was the first fully solar-powered village of the state. The achievement underscores the expanding footprint of decentralised renewable energy in rural Maharashtra, driven by the Centre’s Pradhan Mantri Surya Ghar Muft Bijli Yojana, which aims to promote energy self-reliance, reduce household electricity costs, and accelerate India's transition to clean energy. By shifting entirely to rooftop solar power, the village has ensured an uninterrupted electricity supply for residents while significantly reducing dependence on conventional grid power.
Utility Scale Solar Projects
Tamil Nadu achieved a new milestone in harnessing solar power with 50.8 million units (MU) of solar energy being absorbed into the Tamil Nadu Power Distribution Corporation’s grid. The peak solar generation also recorded an all-time high of 7,276 MW on the same day. Previously, 49.3 MU was the highest per-day absorption of solar power, while 6,731 MW was the peak solar power generation, both recorded on 6 August last year. Power generation from solar plants in the state, which slumped owing to the northeast monsoon, picked up again as dry weather with clear skies prevailed in most parts of the state. With an installed capacity of 10,159.61 MW of solar power, Tamil Nadu stands fourth among states with the highest solar capacity after Rajasthan, Gujarat and Maharashtra. Compared to 2024, the state added an additional 2,000 MW to the solar installed capacity.
The National Capital Region Transport Corporation (NCRTC) is set to develop a 110 megawatt (MW) solar power plant in Uttar Pradesh, aimed at supplying energy to the Delhi-Ghaziabad-Meerut Namo Bharat corridor. Awarded to NLC India, the project is expected to be completed within 24 months. Once operational, the plant will meet nearly 60 percent of the corridor’s electricity needs, making a significant environmental impact by reducing carbon dioxide emissions by about 1.77 lakh tonne annually. The initiative is designed to reduce electricity costs for NCRTC by around 25 percent, as electricity accounts for 30-35 percent of the operational costs for the corridor. This solar power project, a collaboration between NCRTC and NLC India, aligns with India’s National Solar Mission and aims to promote sustainable urban mobility.
Decarbonisation solutions company ReNew Energy Global Plc has partnered with technology giant Google for the development of a 150 MW solar project in Rajasthan. Under this partnership, Google will procure the project's energy attributes, such as carbon credits from ReNew. This long-term procurement is essential for the bankability of the project, and will also help Google make progress towards addressing its value chain emissions. The project, scheduled for commissioning in 2026, is expected to generate around 4,25,000 MWh of clean electricity annually, which is equivalent to powering over 3,60,000 Indian households. With this, ReNew’s committed commercial and industrial portfolio expands to 2.7 GW, reinforcing its position as one of India’s leading providers of corporate clean energy and carbon reduction solutions.
Hydro Power
According to the state Power and Electricity (P&E) department, the Mizoram government has decided to privatise or outsource seven small hydel power plants due to high maintenance costs. The decision was announced by Chief Minister (CM) Lalduhoma while inaugurating a 10 MW solar power plant at Thenzawl in Serchhip. The decision was taken with a belief that it will yield benefits for the state, as the maintenance costs of the projects are high.
Wind Power
The Central Electricity Regulatory Commission has approved a tariff of INR3.97 a kWh (kilowatt hour) for Torrent Green Energy’s 300 MW wind project. Torrent won the project through a competitive bidding process conducted by the Solar Energy Corporation of India (SECI). Torrent intends to put up the project in Gujarat. SECI will buy power from Torrent and, through a back-to-back power sale agreement (PSA), sell it to two electricity distribution companies in Bihar, after a 7-paise mark-up. Bihar will therefore buy the power for INR4.04 a kWh.
Biomass/Bio-Power/Waste to Energy
According to government data, 94 CBG plants sold more than 31,400 tonnes of CBG (compressed biogas) during FY 2024-25. According to the Indian Biogas Association (IBA), it is a tangible proof of growth, and market uptake. As per the IBA, the biogas sector is expected to see investments of over INR50 bn in 2026-27 buoyed by strong interest from investors and stakeholders this calender year. As of date, more than 100 CBG plants have been commissioned, and the year 2025 witnessed strong interest from investors and stakeholders and growing CBG pipeline.
The Uttarakhand government is aggressively pursuing geothermal power generation to reduce dependence on traditional hydropower and secure the state’s energy future. The state has formally implemented the Geothermal Energy Policy-2025 to fast-track geothermal projects. Uttarakhand Jal Vidyut Nigam Limited (UJVNL) is preparing to begin drilling operations at the Tapovan geothermal spring, with necessary paperwork nearing completion. Extensive geological surveys have identified multiple potential sites. The Wadia Institute of Himalayan Geology has listed 40 geothermal springs, while a recent ONGC study indicates around 62 viable sites across Uttarakhand. The government is in talks with the Oil and Natural Gas Corporation (ONGC), which has requested access to several geothermal sites for potential exploration. The concentrated push for geothermal power highlights Uttarakhand’s ambition to become a leader in renewable, base-load energy generation, overcoming the seasonal limitations of hydropower.
Indian Oil Corporation (IOC)’s biogas plant works are progressing rapidly at Tirumala and are expected to be commissioned and fully operational by 2026. In November last year, IOC and Tirumala Tirupati Devasthanams (TTD) partnered to establish a biogas plant at Tirumala. The plant will handle 40 tons per day (TPD) of waste to ensure sustainable energy generation and efficient waste management. TTD has earmarked a 2.2-acre plot near Kakulamanu Dibba, close to Gogarbham dam, for the plant. Both TTD and IOC will spend approximately INR120 million (US$1.31 mn) on the project. Once operational, the plant will produce 1.75–2.00 million tonnes (MT) of compressed biogas daily, which will be used as cooking fuel (steam) at TTD’s Annaprasadam complex, where nearly one lakh devotees are served free meals daily. Currently, TTD requires about 3.35 MT of LPG daily for cooking. The biogas plant will significantly reduce LPG dependence, saving around INR20 mn annually. With over 70,000 devotees visiting Tirumala daily, about 70 MT of dry and wet waste is generated, which will serve as input for the biogas plant, aiding waste management.
Talwandi Sabo Power Limited (TSPL), Vedanta Power’s 1,980 MW supercritical thermal power plant, has supported its partners to set up a biomass manufacturing facility of 500 tonnes per day at Mansa, in Punjab. Mansa has recorded a decline in stubble burning incidents in harvesting season — from 2,253 cases in 2023 to 618 in 2024, and further down to 306 in 2025, amounting to an 87 percent reduction in just two years. Of the 244 villages in the district, 104 reported zero farm fires in 2025.
Nuclear Power
President Droupadi Murmu has granted assent to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, paving the way for private participation in India’s civil nuclear sector. A government notification said the President gave her assent to the SHANTI Bill. Parliament passed the legislation during the Winter Session. The SHANTI Bill subsumes all existing laws governing the civil nuclear sector and opens it up to private companies. It repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act, 2010, which the government said had emerged as impediments to the growth of nuclear power in the country. Under the new law, private companies and joint ventures can build, own, operate and decommission nuclear power plants, subject to licensing by the government. At the same time, the Bill makes it clear that strategic and sensitive activities will remain under state control. The enactment of the SHANTI Bill marks a major restructuring of India’s civil nuclear framework, with the government opening up power generation to private participation while retaining control over critical aspects of the nuclear fuel cycle.
North & South America
Argentine renewable energy producer Genneia has launched the San Rafael Solar Park in Mendoza, following a US$180 mn investment, the company said. The park, Genneia’s third in Mendoza, has 400,000 solar panels and a 180 megawatt (MW) installed capacity, and will power roughly 135,000 homes, Genneia said.
US (United States) President Donald Trump’s administration has approved changes to a Nevada solar energy project, its first advancement of a solar facility on federal lands in months. The approval of amendments to the Libra Solar project comes months after Interior Secretary Doug Burgum ordered that all federal wind and solar project permits would require his personal sign-off, stalling progress on many facilities.
The US Environmental Protection Agency (EPA) expects to finalize 2026 and 2027 biofuel blending mandates, which had originally been expected in late October, in the first quarter of next year. The slowdown pushes one of the Trump administration’s most consequential energy policy choices into 2026. Without clarity on quotas, companies say they are forced to hold back on deals and delay spending decisions that shape output and margins. The mandates are set under the Renewable Fuel Standard, a law that requires billions of gallons of ethanol and other biofuels to be blended into the US fuel pool each year. The EPA said it expects to issue a final rule during the first quarter of 2026 after consultations with the White House Office of Management and Budget, a notice filed with the US Court of Appeals for the DC Circuit showed. A proposed rule issued would have raised total renewable fuel requirements, significantly increasing targets for advanced biofuels and biomass-based diesel while also tightening rules on the use of imported biofuels.
The US solar industry installed 11.7 GW of new solar capacity in the third quarter, a jump of 49 percent sequentially, Solar Energy Industries Association and Wood Mackenzie study showed. The study said solar accounted for 58 percent of all new electricity-generating capacity added to the US grid through the third quarter, with more than 30 GW installed.
Europe
UK company Awendio Solaris plans to invest C$1 bn (US$725.6 mn) to develop a solar cell and module manufacturing facility and global R&D centre in Canada. The move comes amid growing global demand for renewable energy, as countries and companies race to cut carbon emissions and secure clean power sources. Awendio Solaris said it is developing a facility in Québec with an initial annual production capacity of up to 2,500 MW, scalable to 5,000 MW. The startup said construction is expected to begin in the second-quarter of 2026.
Italy awarded more than 1.1 GW of capacity to 88 projects in its first auction exclusively for solar projects built without equipment manufactured in China, setting an average price of €66.38 per megawatt hour. The tariff is 17 percent higher than the average price for a renewable auction earlier this year that had no restrictions on equipment origin, according to data from Italy’s electricity services agency (GSE). The auction is among the first in Europe to apply non-price criteria linked to the European Union’s Net-Zero Industry Act, a package of measures that aims to curb reliance on low-cost renewable components from China. Over 95 percent of solar modules installed in the European Union are imported, with China supplying about 94 percent of the modules and cells in 2023, according to consultancy firm Green Horse Advisory.
Italy’s Edison would start working next year on renewable projects with a combined capacity of over 500 MW, investing more than €600 mn (US$700 mn) after adding about 200 MW of green capacity this year. The new projects, which include about 300 MW of wind power and 200 MW of solar capacity, will be concentrated in regions including Piedmont in northern Italy, Abruzzo in the centre, and Campania, Puglia and Sicily in the south of the country. The Italian subsidiary of French power group EDF aims to double its installed green capacity in the coming years and is also studying pumped hydro storage projects to support grid flexibility and resilience as part of Italy’s decarbonisation goals, Edison said.
Britain posted a new wind generation record, producing enough power for more than 23 million homes, the National Energy System Operator (NESO) said. NESO highlighted that wind generated 23,825 MW of electricity on 5 December, beating the previous high of 22,711 MW set on 11 November. At the time, wind supplied 47.4 percent of Britain’s electricity demand. Britain hosts five of the world’s largest offshore wind farms, and in July set a solar generation record of 14 GW, accounting for nearly 40 percent of power generation at the time, NESO said. NESO said the country’s 47 operational offshore wind farms provide nearly 17 percent of national electricity output.
China
Losses in China’s slumping solar sector narrowed in the third quarter, as the government’s war on industrial overcapacity targeted manufacturers. The solar industry’s capacity reached levels capable of satisfying global demand roughly twice over, making it a focus of Beijing’s broader efforts to rein in industrial production this year. Industry-wide losses narrowed by 46.7 percent quarter-on-quarter but still reached 6.422 bn yuan (US$911.9 mn) in the July-to-September period, according to the China Photovoltaic Industry Association. In the first 10 months of this year, output of solar cells and finished modules rose by 9.8 percent and 13.5 percent respectively, but the industry scaled back polysilicon and silicon wafer output by 29.6 percent and 6.7 percent.
Other Asia Pacific
The Japanese government will tighten regulations and end financial support for large-scale solar power projects to protect the natural environment, ensure safety and preserve landscapes. The move is part of a package of countermeasures targeting mega-scale solar farms endorsed and aligns with Prime Minister Sanae Takaichi’s stance calling for limits on large solar projects. Combined with growing uncertainty surrounding offshore wind projects due to rising costs and developer withdrawals, a potential slowdown in solar farm development could further dampen the pace of renewable energy growth in Japan, the world’s fifth-largest carbon dioxide emitter. The government is considering discontinuing support through the feed-in tariff (FIT) and feed-in premium (FIP) schemes for ground-mounted, large-scale commercial solar power generation starting in the fiscal year beginning in April 2027, the industry ministry said. Under these schemes, renewable power producers are either guaranteed a fixed purchase price for electricity over a set period or sell power on the market while receiving a premium on top of the market price. The government will also consider expanding the scope of environmental assessments. Currently, solar projects under 30 MW are not subject to national assessments, but it will consider broadening this requirement, the environment ministry said.
Japan is moving to unlock more public funding for its crippled nuclear power sector, which experts say is crucial to jump-starting an industry long financed by shareholder-owned utilities. In the wake of the 2011 Fukushima disaster and ensuing public fear about the industry’s safety standards, Japan shut down all of its 54 reactors. Stricter rules and, in some cases, opposition from local residents has meant that only 14 of 33 units available for restarts are currently operational. Japan’s trade and industry ministry proposed a loan system for investments in nuclear power that could help utilities looking to upgrade safety at reactors or build afresh. In November, a ministry working group suggested public financing could be 30 percent of total loans for nuclear projects and possibly more for large projects. Demand could be robust. Japan aims to double the share of nuclear power in its electricity mix to 20 percent by 2040 to boost energy security, contain living costs, and meet power demand set to grow by 6 percent over the coming decade driven by AI data centres, reversing years of decline. New Prime Minister Sanae Takaichi is a strong backer of nuclear power, seeking to ease the bill for imported fuels that fire 60–70 percent of Japan’s power generation. Other factors are providing tailwinds for the industry. Japan’s operational reactors can generate around 13 GW of power. To achieve its 2040 target, at least another 15-16 idle reactors need to be brought online.
India’s RIL would consider buying Venezuelan oil if allowed
8 January: India’s Reliance Industries Ltd (RIL), operator of the world’s largest refining complex, said it would consider buying Venezuelan oil if it is permitted for sale to non-US (United States) buyers. Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) will consider buying Venezuelan oil if sales are allowed to non-US companies. RIL stopped buying Venezuelan oil from March 2025 as US President Donald Trump announced a 25 percent tariff on nations buying crude from the South American producer. RIL’s two refinery complexes in western Gujarat state, with a combined capacity of about 1.4 million barrels per day (bpd) of crude oil, allow it to process cheaper and heavier crudes such as Venezuela’s Merey. India has faced pressure from Western nations to curb Russian oil purchases after Moscow’s invasion of Ukraine on concern oil revenue may be financing Russia's war effort.
India’s fuel demand hits highest on record in December
6 January: India’s fuel consumption hit 21.75 million metric tonnes in December, up 5.3 percent year-on-year and the highest monthly number recorded in oil ministry data going back to April 1998. India is the world’s third-largest consumer and importer of oil and the largest buyer of Russian seaborne crude, taking advantage of discounts on Russian oil as Europe and the US (United States) shun those barrels over Russia's invasion of Ukraine. The oil ministry’s Petroleum Planning and Analysis Cell (PPAC) data showed sales of gasoline, or petrol, stood at 3.56 million metric tonnes in December, up 1.1 percent from November and 7.1 percent from a year earlier. Diesel consumption was at 8.46 million tonnes, up 5 percent from a year earlier but down 1.1 percent month-on-month. Liquefied petroleum gas consumption rose 11.2 percent from a year earlier to 3.08 million tonnes.
ATF prices cut by 7 percent, commercial LPG rate hike by INR111 per cylinder
1 January: Oil marketing companies (OMCs) reduced aviation turbine fuel (ATF) prices by 7.3 percent as part of their monthly revision aligned with global fuel benchmarks. Meanwhile, the price of commercial LPG cylinder was raised by INR111. The reduction follows three consecutive monthly increases. On 1 December, the ATF prices were raised by 5.4 percent after similar such hikes in November and October. The latest cut offsets more than two-thirds of the increase recorded since 1 October. ATF price in Delhi was cut by INR7,353.75 per kilolitre, or 7.3 percent, to INR92,323.02 per kl. The price cut is expected to ease cost pressures on airlines, for whom fuel accounts for nearly 40 percent of total operating expenses. Airlines did not immediately comment on the impact of the revision. ATF prices were also revised downward in other metro cities. In Mumbai, the new rate is INR86,352.19 per kl. Chennai and Kolkata recorded revised prices of INR95,770 per kl and INR95,378.02 per kl, respectively. Rates vary across cities due to differences in local taxes. Alongside the ATF revision, oil companies increased the price of a 19-kg commercial LPG cylinder by INR111. In Delhi, the cylinder costs INR1,691.50.
Indian Oil sets new record for winter fuel stocking in Ladakh
31 December: Indian Oil Corporation has completed its highest-ever winter stocking operation in Ladakh, supplying over one lakh kilolitres of petroleum products ahead of the region's annual winter shutdown. Every year, access to Ladakh is cut off from December to April due to heavy snowfall at high mountain passes like Zojila and Rohtang. To ensure uninterrupted fuel supply during this period, Indian Oil undertakes advance stocking. These supplies are vital for both civilians and the strategic needs of the Indian Army. Indian Oil’s tanker drivers and field teams operate on some of the toughest fuel supply routes in the world, covering 1,600-2,000 km over seven to eight days.
India’s NSE in talks with IGX to launch natural gas futures contract
8 January: India’s National Stock Exchange (NSE) is in discussions with Indian Gas Exchange (IGX) to develop and launch Indian natural gas futures. The proposed collaboration with IGX is aligned with the country’s broader goal of increasing the share of natural gas in its energy basket and promoting market-based pricing mechanisms, NSE said. The collaboration is subject to regulatory approvals, and NSE and IGX will work with stakeholders to ensure a smooth launch of the proposed derivatives contract, NSE said. India’s energy markets have seen heightened volatility in recent sessions amid global uncertainty, including renewed concerns over potential US (United States) tariffs that have weighed on oil and gas stocks.
Remote likelihood of escalation at Konaseema gas well blowout in Andhra Pradesh: ONGC
7 January: ONGC (Oil and Natural Gas Corporation) said there is a “remote likelihood” of escalation of its unextinguished gas well blaze triggered by a blowout in Dr BR Ambedkar Konaseema district. A massive fireball reaching up to a height of 20 meters and a width of 25 meters erupted on 5 January near Mori and Irusumanda villages, following a gas leak at an ONGC owned Well Mori- 5, whose intensity has been reduced. A blowout is the uncontrolled release of crude oil or natural gas from an oil well or a gas well, following the failure of pressure control systems.
Torrent Gas slashes CNG price by up to INR3.50 per kg, PNG by up to INR2 per unit
2 January: Torrent Gas announced a reduction of up to INR3.50 per kg in the retail price of CNG (compressed natural gas) and up to INR2 per standard cubic metre in domestic PNG (piped natural gas) in its areas of operation connected to the National Gas Grid across the country. This reduction in prices of CNG and PNG comes on the back of the implementation of the Unified Tariff order by PNGRB, effective from 1 January 2026.
Switch to LNG may save US$1 bn spent on oil imports: PNGRB
1 January: India could save US$1 billion in crude oil imports annually if the country switches 10 percent of its diesel usage in the transport sector to liquefied natural gas (LNG), according to Petroleum and Natural Gas Regulatory Board (PNGRB) study. Drawing a strong case for boosting LNG usage in heavy-haul transport, the regulator said India holds the scope to switch 30-40 percent of diesel vehicles to LNG in the next five-seven years by replacing intra-city or inter-city buses, heavy-haul mining machinery, and haul trucks.
GAIL Gas cuts CNG, domestic PNG prices
1 January: GAIL Gas Ltd announced a INR1 reduction in CNG price and the rate for natural gas piped to household kitchens for cooking purposes following rationalisation of pipeline tariffs. The announcement comes a day after Indraprastha Gas Ltd, India’s largest city gas retailer, cut prices of natural gas piped into household kitchens for cooking in Delhi and NCR towns by INR0.70 per standard cubic meters. Prior to that, Think Gas had cut CNG prices by INR2.50 per kg and that of domestic piped natural gas (PNG) by up to INR5 per standard cubic meters (scm).
India’s natural gas consumption seen rising 3-4 percent in FY27 on demand: ICRA
31 December: India’s natural gas consumption is expected to grow by 3-4 percent year on year in 2026-27, following a period of near-term moderation in the previous year, credit rating agency ICRA said. The rebound in domestic gas demand would be driven by a recovery in industrial offtake from key sectors and the continued expansion of the city gas distribution (CGD) network. Supporting the gas consumption outlook, global liquefied natural gas (LNG) prices have eased on expectations of warmer winters in key regions and healthy inventory levels. The upcoming sizeable LNG capacity additions globally are expected to lead to a moderation in prices from calendar year 2027. India witnessed a 4.5 percent decline in gas consumption in the first seven months of FY26, driven by lower offtake from key consuming sectors including fertiliser, power and refineries. While the CGD segment continues to witness healthy growth and remains a key driver, overall consumption for FY26 is anticipated to be flat or show low single-digit moderation.
Coal-fired power generation sees year-on-year decline for the first time in half a century
13 January: For the first time in half a century, coal-fired electricity generation in India saw a year-on-year decline in 2025, driven largely by the rapid growth in power generation from renewables, Centre for Research on Energy and Clean Air (CREA) study has said. Coal-fired plants generated a total of 1,283 billion units of electricity in 2025, 3 percent less than 1,322 billion units generated in the previous year even as overall electricity generation was about 1 percent higher than in 2024. The overall trend of coal-fired electricity generation, though, has not changed in the last few years. Even when the generation from coal was increasing year-on-year in absolute numbers, the rate of growth had been showing a decline. In 2024, coal-fired generation increased by 5 percent as against 15 percent in 2023, the study showed.
NTPC Chatti Bariatu coal project operations disrupted by local protests
11 January: Protest by locals at NTPC Ltd’s Chatti Bariatu coal mining project in Keredari area of Hazaribag district has disrupted operations over the past two days, resulting in loss of INR15 million to the PSU. During the unrest, mining activities, coal production, blasting and operations at the Coal Handling Plant (CHP) remained completely stalled.
India’s coal import rises in November, likely to drop in coming months due to increased domestic availability
4 January: India’s coal imports, which jumped 28.1 percent in November, is expected is see a decline in the coming months on account of increased availability of domestic resources, according to industry data. Imports in November rose to 25.07 million tonnes (MT) as against 19.57 MT imported in November 2024, according to data compiled by mjunction services ltd, a B2B e-commerce platform and joint venture of SAIL and Tata Steel.
Coal India opens up auctions to buyers from Bangladesh, Nepal and Bhutan
2 January: Coal India Ltd (CIL) opened up its e-auctions to foreign buyers from neighbours Bangladesh, Bhutan and Nepal amid a decline in local demand for power generation. India’s coal-based power generation has dropped in seven of the past 12 months as renewable energy penetration has picked up. CIL’s supplies to consumers declined, 2.2 percent on-year in the April to December period. India’s neighbouring countries were buying coal via traders. In the year through November, India exported about 1.54 million tonnes of coal, mainly to Bangladesh, Nepal and Bhutan, as per data from coal trading firm I-Energy Natural Resources.
Coal India posts 4.6 percent output growth in December, but offtake drops 5.2 percent
1 January: Coal India Ltd (CIL) reported a 4.6 percent year-on-year (y-o-y) growth in production and a 5.2 percent fall in offtake in December. The miner, along with its eight subsidiaries, produced 75.7 million tonnes (MT) of coal in December 2025, higher than 72.4 MT in the same month in 2024. However, the offtake was at 64.9 MT in the month under review, lower than 68.5 MT in December 2024. CIL’s cumulative production fell by 2.6 percent to 529.2 MT in April-December FY26 from 543.4 MT in the nine-month period of the preceding FY25. Offtake during the period also slipped 2.2 percent to 544.7 MT from 557 MT in April-December 2024-25.
NLC India inks coal mining pact with GRN North Dhadu Coal Mine
31 December: NLC India has signed coal mining agreement (CMA) with GRN North Dhadu Coal Mine on 30 December 2025 for operation and development of North Dhadu Western Part Coal Mine under Mine Developer and Operator mode after following the due Global Tendering process. This coal mine is having more than 110 million tonnes of extractable coal reserves with rated capacity of 3 million tonnes per annum. The average grade of the coal is G12. This is the first commercial coal mine won by the company in the auction conducted by coal ministry.
Tata Power commissions 1k MVA Substation In Greater Noida To Boost NCR Supply
9 January: Tata Power has commissioned a new 400/220 kV (kilovolt) substation in Greater Noida, adding 1,000 MVA (megavolt-ampere) of transformation capacity to strengthen electricity supply in Greater Noida and the National Capital Region. The facility, which includes the Metro Depot substation and associated transmission lines, is expected to support local load growth and feed surplus capacity into the Northern Grid. The substation was commissioned on 9 January 2026, and will help meet rising demand for power in the region as residential, commercial and industrial consumption continues to grow. Tata Power said the infrastructure will not only improve reliability for local consumers but also allow excess capacity to be transferred to other northern states via the grid, contributing to broader regional system stability. Greater Noida has experienced significant growth in recent years, with expanding residential sectors, commercial hubs and infrastructure projects driving increased electricity consumption. The new substation aligns with Tata Power’s broader strategy of strengthening grid infrastructure in high-growth regions while reinforcing its role as a key participant in the country’s power transmission and distribution ecosystem. This investment is part of ongoing efforts to modernise and expand India’s electricity infrastructure in response to rising demand.
HERC asks power distribution companies to reduce loss of electricity during distribution
8 January: The Haryana Electricity Regulatory Commission (HERC) directed the state power distribution companies (discoms) to reduce the aggregate technical and commercial (AT&C) losses. Technical loss of electricity refers to the total energy lost due to infrastructure issues like transformer or line disturbances, while losses on account of meter damage, theft or bill collection inefficiency come under commercial loss. The regulator directed the discoms to ensure an uninterrupted 24-hour electricity supply in villages.
Vidyut Vinyogadarula Ikya Vedika demands Andhra Pradesh government clear subsidy arrears and electricity dues
6 January: The Vidyut Vinyogadarula Ikya Vedika demanded that the state government immediately clear all the subsidy arrears and electricity bill dues payable to power distribution companies (discoms), warning that continued delays are severely affecting the financial health of the power utilities in the state. The state government gave a written assurance to the Andhra Pradesh Electricity Regulatory Commission (APERC) in March 2023 that it would pay electricity subsidies for the year 2023–24.
Jaipur discom replaces defective meters except for agriculture connections
2 January: Jaipur discom (distribution company) replaced all the defective meters under its 18 circles, except for the agriculture connections, which will help it generate bills and collect revenues authentically. Over the past two years, the utility replaced 2.78 lakh defective meters. Only 13,493 defective meters remain in the three-phase agriculture category, which are also being replaced on priority. The move is expected to sharply reduce consumer complaints related to incorrect or average billing. Earlier, consumers with faulty meters were billed on the basis of average consumption, often leading to disputes and dissatisfaction. More importantly, regulatory provisions mandate a 5 percent rebate in electricity charges if a meter remains defective for over 2 months, resulting in direct revenue loss for the discom. The Rajasthan Electricity Regulatory Commission (RERC) repeatedly advised utilities to eliminate defective meters to improve operational efficiency and data accuracy.
Cabinet approves compensation for Udupi-Kasaragod 400 kV line project
1 January: The cabinet approved a special compensation package for Udupi-Kasaragod 400 kilovolt (kV) inter-state transmission line project, clearing a major hurdle for state’s critical power infrastructure initiative. The package, aimed at ensuring fair compensation to landowners affected by the project, will be funded by Udupi Kasaragod Transmission Ltd (UKTL), a special purpose vehicle formed by Sterlite Power Transmission Ltd. The decision is expected to accelerate the delayed project and provide a lasting solution to power deficit in north Kerala. The transmission line is a key component of the state’s efforts to augment power supply to Kasaragod and Kannur, which depend on ageing 220 kV feeders from Areekode. Once completed, the project is expected to significantly improve grid stability and meet rising power demand in the region. A 400/220 kV gas-insulated substation was completed at Karinthalam on 12 acres provided by the state.
UPPCL extends power bill relief scheme till 3 January
1 January: The Uttar Pradesh Power Corporation Ltd (UPPCL) has extended the first phase of the Electricity Bill Relief Scheme-2025 until 3 January following an overwhelming response from consumers across the state. The scheme, launched on 1 December, was scheduled to conclude on 31 December, but has now been extended to ensure all eligible consumers can benefit. UPPCL chairman Ashish Kumar Goel said the scheme has drawn wide public support, with nearly 27 lakh consumers registering so far and contributing around INR29 billion in revenue. As the first phase reached its earlier deadline, electricity bill relief camps across districts witnessed heavy turnout. State Power Minister Arvind Kumar Sharma said the scheme has emerged as a major support system for poor and middle-class households burdened by electricity arrears for years. He said that consumers, who had previously never paid their bills but made at least one payment between March 2025 and 30 November 2025, would also be eligible for the scheme.
Andhra Pradesh clears Websol’s INR35 bn 8 GW solar project
13 January: The Government of Andhra Pradesh has approved a landmark greenfield investment by Websol Renewable Private Limited to establish a fully integrated 8 gigawatt (GW) solar manufacturing facility at MPSEZ–Naidupeta in Tirupati district. Spread across 120 acres, the facility will be developed in two phases, with commercial production scheduled to begin in July 2027 and July 2028. Once operational, it will rank among the largest and fastest-executed solar manufacturing projects in South India, producing 4 GW of solar cells and 4 GW of solar modules. To ensure sustainable and cost-efficient operations, the government has allotted land for a dedicated 300-acre captive solar power plant, enabling Websol to run its facility entirely on renewable energy. In addition, the company has announced a 100 MW captive solar plant to strengthen energy security and reduce operating costs. The project further consolidates Naidupeta and the southern Tamil Nadu industrial corridor as one of India’s most important solar manufacturing hubs. Alongside Websol, companies such as Premier Energies, Tata Power, and Voltsun are setting up large-scale facilities in the region.
Essar signs MoU to invest INR51 bn in Gujarat bio-fuel project
12 January: Essar Future Energy Limited announced it would establish a large-scale bio-fuel complex in Gujarat’s Devbhumi Dwarka district with a proposed investment of INR51 billion. The company signed a memorandum of understanding (MoU) with the state government at the ongoing Vibrant Gujarat Regional Conference (VGRC) in Rajkot. Under the MoU, Essar Future Energy will establish a large-scale bio-fuel complex in Devbhumi Dwarka district, with an initial feedstock processing capacity of 1 million tonnes per annum (MTPA), it said.
Solar power to light up 96 UT buildings
11 January: The Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST) of the UT (Union Territory) administration has floated a tender to hire an agency for installation of solar panels on 96 buildings of the Municipal Corporation (MC), marking the city’s first large-scale solar energy project under the RESCO (Renewable Energy Service Company) model. The project took over a year to materialise due to extensive paperwork for preparartion of the tender document and signing of a memorandum of understanding (MoU) between MC and CREST. It will be implemented on a large number of government properties in one go, making it the first-of-its-kind initiative in Chandigarh. The selected company will be engaged for 25 years. Under the RESCO model, the agency will make the entire investment in solar plants on identified rooftops, ensuring the MC incurs no expenditure. According to CREST estimates, the project will cost around INR150 million and generate 3 megawatt (MW) of solar energy annually, translating into approximately 39 lakh units of power.
Himachal CM asks for installation of solar power systems at healthcare institutions
10 January: Himachal Pradesh Chief Minister (CM) Sukhvinder Singh Sukhu directed the installation of rooftop solar power systems at healthcare institutions under the health department. He said that installing these systems in a phased manner would promote green energy and also help save money. He said that his government has set a target to develop Himachal Pradesh as a green energy state, and effective steps are being taken to achieve this goal.
India adds 48 GW of renewable energ capacity
10 January: India’s renewable energy sector wrapped up 2025 with a record-breaking surge in capacity additions, underscoring the pace of the country’s clean energy transition. About 48 gigawatt (GW) of new renewable capacity was added during the year, including large hydro projects, while around 45 GW was added excluding the large hydro segment, compared with 28 GW added in 2024.
Two remote tribal villages in Odisha go fully solar
8 January: Two remote tribal villages, Olaba and Kandakela Devabhumi, in Cuttack district’s Narsinghpur block became completely solar-powered. These are the first tribal villages in the state to be powered by solar energy, according to the district administration. Around 80 households in the two villages have been provided electricity through rooftop solar panel installations, ensuring complete electrification using renewable energy. The project was implemented by TP Central Odisha Distribution Limited (TPCODL) and was completed within 25 days. The availability of uninterrupted solar power is expected to improve household lighting, education, healthcare services and livelihood activities, while also reducing electricity expenses. For each solar panel installation, the central government provided a subsidy of INR30,000, while the state government contributed INR25,000. The initiative has been specifically implemented for Below Poverty Line (BPL) families to ensure equitable access to reliable electricity. Apart from improving living standards, the project is expected to promote awareness about renewable energy and encourage similar interventions in other remote pockets of the district.
In a first in India, Chhattisgarh launches PMAY houses powered with solar power for tribal households
8 January: Chhattisgarh rolled out what officials described as a first-of-its-kind model in the country by installing rooftop solar plants on Prime Minister (PM) Janman Awas homes of Pahadi Korwa families classified as a Particularly Vulnerable Tribal Group, so that some of the state’s poorest tribal households got both a pucca house and virtually zero electricity bills. In the pilot phase, rooftop solar systems were installed on eight houses of Pahadi Korwa families in remote Gudurumuda village of Podi-Uproda block in Korba district. Chhattisgarh State Power Distribution Company Limited (CSPDCL) said this was the first time in the country that PM Janman Awas and PM Suryaghar were formally dovetailed in this manner to deliver both housing and assured solar power to PVTG families.
Uttar Pradesh plans AI City powered 100 percent by renewables
6 January: Lucknow’s upcoming Artificial Intelligence (AI) City is set to run entirely on green energy, making it one of the first large technology hubs in the country planned with a fully renewable power backbone. The project is being designed to integrate solar power, green hydrogen and other clean sources into all core operations, from data centres to smart infrastructure. The AI City is a flagship initiative of the Uttar Pradesh government and is expected to house research institutions, technology companies, start-ups and high-performance computing facilities. By combining advanced digital infrastructure with a renewable-driven energy system, planners aim to position the project as a model for sustainable innovation ecosystems. The broader vision behind the AI City aligns with Uttar Pradesh’s long-term push to increase renewable energy adoption. The state has announced targets around solar capacity addition, green hydrogen development and energy-efficient urban infrastructure. The AI City is expected to act as a demonstration site for how technology-driven urban centres can operate with minimal environmental impact.
ONGC to store CO2 in depleted wells at Gujarat’s Gandhar field in first CCS pilot
4 January: Oil and Natural Gas Corporation (ONGC) plans to store captured carbon dioxide (CO2) in depleted wells at Gujarat’s Gandhar oilfield, marking the company’s first full-scale Carbon Capture and Storage (CCS) pilot and a major step in its decarbonisation strategy. The pilot will use two abandoned onshore wells to inject around 100 tonnes of CO2 per day into subsurface hydrocarbon reservoirs. The project aims to test using CO2 to enhance oil recovery, turning a potentially harmful greenhouse gas into a productive resource.
10 months too short to judge government’s pollution control measures: Tiwari
3 January: Claiming that 10 months is too short a period to judge the government’s performance on pollution control, Delhi BJP MP Manoj Tiwari said it should be given at least two years to address the problem effectively. He said air pollution remains a serious challenge for the national capital and asserted that the government has been working on it from day one.
Adani Green Energy operationalises 307 MW renewable energy projects
31 December: Adani Green Energy Ltd (AGEL) said the company, through its various step-down subsidiaries, has operationalized an aggregate 307.4 megawatt (MW) power projects at Khavda, Gujarat, from 1 January 2026. With the commissioning of these plants, AGEL’s total operational renewable generation capacity has increased to 17,237.2 MW. The company plans to operationalize these plants and commence power generation from 1 January 2026.
Goldman projects lower oil prices in 2026 as supply swells
12 January: Oil prices are likely to drift lower this year as a wave of supply creates a market surplus, although geopolitical risks tied to Russia, Venezuela and Iran will continue to drive volatility, Goldman Sachs said. The investment bank maintained its 2026 average price forecasts of US$56/US$52 per barrel for Brent/WTI (West Texas Intermediate), and expects Brent/WTI prices to bottom at $54/50 in the last quarter as OECD (Organization for Economic Cooperation and Development) inventories build up. US (United States) policymakers' focus on strong energy supply and relatively low oil prices will keep sustained oil price upside in check ahead of the midterms, analysts at the bank noted. Prices are expected to gradually start recovering in 2027, with the market returning to a deficit as non-OPEC (Organization of the Petroleum Exporting Countries) supply slows down and solid demand growth continues, Goldman analysts said in a note.
OPEC oil output falls in December on Iran and Venezuela
9 January: The Organization of the Petroleum Exporting Countries (OPEC)’s oil output fell in December due to lower supply from Iran and Venezuela, which offset an OPEC+ agreement to raise production for the month, a survey found. The OPEC pumped 28.40 million barrels per day (bpd) last month, down 100,000 bpd from November's revised total, the survey showed, with Iran posting the largest decline. OPEC+, comprising OPEC and allies including Russia, has slowed the pace of its monthly output increases amid concerns of a supply glut. Many members are running close to capacity limits and some are tasked with extra cuts to compensate for earlier overproduction, limiting the impact of further increases. Iranian crude supply dropped by 100,000 bpd in December, the survey found.
US oil major Exxon signals lower oil prices could hit fourth-quarter upstream profit
7 January: United States (US) oil major Exxon Mobil said that lower crude oil prices could cut its fourth-quarter upstream earnings by about US$800 million to US$1.2 billion. Oil prices declined 9.2 percent during the three months ended 31 December, as concerns about oversupply and tariffs outweighed geopolitical risks. Brent crude futures shed about 19 percent in 2025, the most substantial annual percentage decline since 2020 and their third straight year of losses, the longest such streak on record. US West Texas Intermediate crude logged an annual decline of almost 20 percent. The company said that changes in gas prices could affect its quarterly upstream earnings from a negative US$300 million to as much as a positive US$100 million. Exxon said restructuring charges could negatively impact overall earnings by about US$200 million. Late last year, the company had flagged that its corporate plan focused on cutting costs and boosting profit even through periods of oil price volatility.
Trump offers US oil companies a poisoned chalice in Venezuela
6 January: United States (US) President Donald Trump is giving US energy companies the opportunity to revive Venezuela’s massive, derelict oil industry. After the US military’s ouster of Venezuelan President Nicolas Maduro, representatives of the Trump administration plan to meet with oil executives to discuss boosting Venezuelan oil production. Tapping Venezuela’s vast oil reserves - the world's largest at over 300 billion barrels, or roughly one-fifth of the global stock – may be a tempting prospect for Exxon Mobil, Chevron and ConocoPhillips. The potential to increase Venezuela’s oil production is enormous. Following years of mismanagement and US sanctions, the Latin American country’s production has slumped from a record of over 3.5 million barrels per day (bpd) in the 1970s, when it made up around 8 percent of global supplies, to below 1 million bpd last year, less than 1 percent of today’s supply.
OPEC+ to maintain oil output policy amid Saudi-UAE tensions over Yemen
2 January: Organization of the Petroleum Exporting Countries plus (OPEC+) will likely maintain steady oil output at its meeting, three OPEC+ delegates said, despite political tensions running high between key members Saudi Arabia and the UAE over Yemen. Sunday’s meeting of eight members of OPEC+, which pumps about half the world's oil, comes after oil prices fell more than 18 percent in 2025 — their steepest drop since 2020 — amid growing oversupply concerns. The eight - Saudi Arabia, Russia, UAE, Kazakhstan, Kuwait, Iraq, Algeria and Oman - raised oil output targets by around 2.9 million barrels per day from April to December 2025, equal to almost 3 percent of world oil demand. The UAE said it would withdraw its remaining forces from Yemen after Saudi Arabia supported a call for Emirati troops to leave within 24 hours, one of the most serious public disagreements between the two Gulf oil producers.
French utility Engie signs 15-year LNG deal to supply Thai power plants
13 January: French utility Engie has signed a 15-year deal to supply LNG (liquefied natural gas) to power plants in Thailand owned by Gulf Development PCL, the Thai company said. Deliveries of up to 0.8 million metric tonnes a year will begin in 2028. Thailand is Southeast Asia’s biggest LNG importer, with demand for the fuel set to rise as the country steadily displaces coal, which still accounts for about 14 percent of the national electricity mix. The state-backed French company has signed long-term contracts to purchase 3.5 million tonnes of US (United States) LNG annually beyond 2040 from NextDecade’s Rio Grande LNG, Cheniere’s Corpus Christi LNG and Sempra’s Port Arthur LNG.
Lebanon to sign gas exploration deal: Cabinet
8 January: Lebanon will sign a gas exploration deal with a consortium comprising QatarEnergy, TotalEnergies and Italy’s Eni in the country’s Block 8 offshore area, the Lebanese cabinet said. In 2023, Lebanon granted a licence to conduct seismic studies on Block 8 to Bright Skies and GeoX. Lebanon hopes gas and oil discoveries will help it to reverse a crippling economic crisis that has cost the local currency more than 98 percent of its value, eroded the country's foreign reserves and caused rolling blackouts across towns and cities.
Petrovietnam Gas awards first-ever LNG term contract to Shell
7 January: Petrovietnam Gas has awarded its first-ever term supply tender seeking LNG (liquefied natural gas to energy major Shell, which will deliver the super-chilled fuel to Vietnam from 2027 to 2031. The five-year supply deal will see Shell deliver about 400,000 metric tonnes a year of LNG to the Southeast Asian nation, according to a Petrovietnam Gas. The LNG will be supplied on a delivered ex-ship (DES) basis to Petrovietnam Gas' Thi Vai terminal. Vietnam began importing LNG in 2023, with its first cargo delivered to its inaugural Thi Vai import terminal. Operated by Petrovietnam Gas, the terminal in the country’s south near Ho Chi Minh City will primarily supply two gas-fired power plants, which began commercial operations in mid-December. Vietnam has only imported LNG from the spot market so far, shipping in 0.5 million tonnes of the fuel in 2025, according to Kpler data. It issued its first-ever tender seeking term supply in August.
Egypt, Qatar sign MoU to boost LNG sales and import cooperation
4 January: Egypt and Qatar signed a memorandum of understanding (MoU) to boost cooperation in LNG (liquefied natural gas) sales and imports, including terms for supplying Qatari shipments to Egypt’s Ain Sokhna and Damietta ports, Egypt’s petroleum ministry said. QatarEnergy said that the agreement includes supplying Cairo with up to 24 liquefied natural gas cargoes for the upcoming summer. Egypt, the Arab world’s most populous nation, has been trying to increase its own gas production and diversify import sources to meet its growing energy needs. Production began declining in late 2022, putting pressure on its ambitions to become a regional supply hub, and forcing it to plan for significant imports from Israel and Cyprus, along with costly LNG cargoes. Egypt produced 3,635 million cubic meters (mcm) of gas in October last year, up slightly from 3,525 mcm in September but down from 3,851 mcm in October 2024, according to the Joint Organizations Data Initiative.
China receives 22 shipments of LNG from sanctioned Russian projects in 2025
2 January: China received 22 shipments of liquefied natural gas (LNG) last year from two export projects in Russia sanctioned by the United States (US) and European Union (EU), shiptracking data showed. One shipment was from Portovaya and the rest were from the Arctic LNG 2 project, data from showed. The US and EU have sanctioned the projects to curb revenue reaching Russia following its invasion of Ukraine. China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) each own 10 percent of the Arctic LNG 2 project. All of the shipments were delivered to the Beihai LNG Terminal in China’s southwestern Guangxi region.
US sets new LNG export records in banner year marked by new capacity
2 January: The United States (US) in 2025 became the first country to export more than 100 million metric tonnes (mmt) of liquefied natural gas (LNG) in a single year, powered by the startup of production from new plants, LSEG data showed. The world’s largest LNG exporter sold 111 mmt of the fuel, almost 20 mmt more than its nearest rival Qatar and nearly 23 mmt more than it did last year, data showed. US shipments accounted for roughly a quarter of global LNG exports last year. Venture Global’s Plaquemines facility - the country’s second-largest export plant - delivered 16.4 mmt in 2025 after sending its first cargo in December 2024, data showed.
JERA on track for 20 percent ammonia co-firing at Hekinan coal power plant in FY29
13 January: Japan’s biggest power generator JERA is on track to achieve 20 percent ammonia co-firing at a unit of its Hekinan thermal power station in fiscal 2029, marking the world’s first commercial use of ammonia as a fuel, the plant’s head Mitsutaka Ban said. The project, aimed at reducing carbon emissions, is moving ahead despite weakening momentum in global energy transition, as high costs for hydrogen, ammonia and other materials have led energy firms to scale back or delay investments. JERA plans to begin commercial co-firing of 20 percent ammonia at the plant’s 1 gigawatt (GW) No. 4 unit and has secured a 15-year government subsidy to cover the cost difference between ammonia and coal. Electricity generated from the project could be sold with a premium via wholesale markets or directly to customers through power purchase agreements, Ban said.
Malaysia steps up gas-fired power use in December as reliance on coal falls
8 January: Malaysia boosted natural gas-fired power generation and slashed reliance on coal in December, as rising production bolstered local supply and helped expand liquefied natural gas exports. Gas-fired power generation accounted for most of a nearly 5 percent rise in electricity supplied to Peninsular Malaysia in December, making up for a 4.3 percent decline in coal-fired output, real-time data from Malaysia’s Grid System Operator (GSO) showed. The Southeast Asian nation of 35 million, however, expects natural gas to overtake coal as its main source of power only in the next decade. Power consumption in Peninsular Malaysia has been rising in recent years due to a surge in demand from energy-guzzling data centres, pushing it to crank up reliance on coal-fired power. Coal’s share in Peninsular Malaysia’s annual power generation rose to 58.6 percent in 2025 from 56.5 percent in 2024, data showed, while the share of gas fell to 33.1 percent from 36.4 percent in 2024 as output fell nearly 10 percent in the year through November.
Japan’s Osaka Gas starts unit at new 1.25 GW gas-fired power plant in Himeji
5 January: Japan’s second-biggest city gas provider Osaka Gas said it started commercial operations of the No.1 unit at its new 1.25 gigawatt (GW) gas-fired power station in Himeji, western Japan, on 1 January. The plant comprises two 622.6 MW units, with the No.2 unit expected to begin operations in May, the company, which supplies electricity, said. The facility runs on natural gas and uses a high-efficiency gas turbine combined-cycle power generation system, according to the company. Japan has been auctioning new gas-fired power capacity mainly to replace ageing coal plants, awarding 7 GW over the past two years, the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO) said. The OCCTO has projected liquefied natural gas-fired capacity will rise to 85.75 GW by 2034 from 79.98 GW in 2024.
Vistra to buy Cogentrix Energy in US$4.7 bn deal amid surging power demand
5 January: Utility Vistra said it has agreed to buy Cogentrix Energy, comprising 10 natural gas-fired power plants, from Quantum Capital Group for about US$4.7 billion, as it looks to meet growing power demand. The deal includes about US$2.3 billion in cash, US$900 million in Vistra stock and the assumption of US$1.5 billion in debt, partly offset by expected tax benefits, the Texas-based electricity producer said. This acquisition follows Vistra's $1.9 billion deal in May 2025 for seven gas-fired plants with nearly 2,600 megawatt (MW) of combined capacity from Lotus Infrastructure Partners. The United States (US) Energy Information Administration (EIA) estimates electricity consumption in the country to reach record highs in 2026, driven by surging demand from data centers racing to support Big Tech’s growing AI ambitions. The acquisition will diversify and expand Vistra's geographic footprint by adding 5,500 MW of net capacity across some of the major power regions in North America. The transaction is expected to close in mid-to-late 2026.
New York sues Trump administration over pause on two offshore wind projects
9 January: New York’s attorney general sued the Trump administration for suspending construction on two major offshore wind projects that the state said it needs to power 1 million homes and reduce its reliance on fossil fuels. Equinor and Orsted have faced repeated setbacks to their offshore wind developments under Trump, who has said wind turbines are ugly, costly and inefficient. Both offshore wind developers have filed their own lawsuits against Interior on behalf of their multibillion-dollar New York projects, Empire Wind and Sunrise Wind. Orsted has sued on behalf of Sunrise Wind and another project, Revolution Wind, which is being built off the coast of Rhode Island. The company in September succeeded in getting a federal judge to block a separate Trump administration stop-work order on Revolution Wind.
China’s market regulator summons top solar firms over monopoly concerns
8 January: China’s market regulator has summoned six top Chinese solar firms including Tongwei, Daqo New Enery and GCL Technology over monopoly concerns. The regulator urged the companies not to coordinate on production capacity, capacity utilisation, output or prices. It also prohibited the enterprise from dividing markets or allocating production and profits through investment ratios, and demanded them to submit written rectification plans by 20 January.
Toda starts commercial operation of Japan's first floating wind farm
5 January: Toda Construction said that its consortium has started commercial operations at the Goto offshore wind farm in Nagasaki in southern Japan, marking the country’s first commercial floating wind project. The 16.8 megawatt (MW) floating wind farm is the first facility certified under a new law by the industry and land ministries aimed at promoting the sector, as Japan seeks to expand renewable power capacity to meet its 2050 carbon-neutral goal. The Goto Floating Wind Farm consortium, led by Toda and comprising five other companies including Eneos and Osaka Gas, uses a hybrid spar-type floater with a steel upper section and a concrete lower section. Japan aims to develop 10 gigawatt (GW) of offshore wind projects by 2030 to bolster energy security and cleaner power, but the sector faces growing uncertainty amid rising costs and developer withdrawals. The country is also targeting a 45 GW offshore wind pipeline by 2040, including 15 GW or more of floating wind across its vast exclusive economic zone, the world’s sixth largest.
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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