India's Power Generation Mix and Power Prices

A few years ago, record power demand meant high market prices. But that is not the case anymore.

On 25th April, India saw its highest ever peak demand at 3:38 PM. But power prices at that very moment were trading at nearly 50% of what they were during the same evening.

Thanks to Solar power.

At peak, solar power generates about 80 GW or nearly 33% of total power demand. During this window, power prices plummet to their lowest levels, touching nearly ₹1.5/kWh.

While this may be the case for most countries with good solar potential, what stands out as unique for India is how we use coal power. In most other parts of the world, Gas Plants act as the balancing power plants. But in India, it's Coal plants (partly Hydro).

We have all seen the bell curve for solar power generation, but the graph below for the day 25th April 2026 clearly shows what that bell curve means for coal power generators. They have to bring down their plants from nearly 80% load to 55% load within a matter of hours, and then ramp back up again at a faster pace to accommodate cheaper solar power.

No wonder NTPC recorded 692 boiler-tube leakages between 2022 and 2025.

More importantly, we have already reached the minimum operating floor of 55% for coal power generators. That means unless we build storage options or use gas-based power for balancing (provided the Hormuz Strait opens), the grid may struggle to absorb large new solar additions.

What we choose to do in the next five years will shape the future of India’s electricity mix.