India is burning more coal as extreme heat and the Iran war squeeze energy supplies in Dry Bulk Market , Freight News 06/05/2026 India, the world’s third-largest carbon dioxide emitter, is burning more coal as energy supply disruptions due to the Iran war and a nationwide heatwave have boosted demand for the dirty fuel. More than 70% of India’s power is generated from coal-fired plants, and energy experts told CNBC that the share is expected to rise this year. In February, India announced that more than 52% of its total installed power generation capacity came from non-fossil fuel sources, with the majority coming from solar, hydropower and wind. Yet, coal-fired power plants, which account for nearly 43% of total generation capacity, remain the dominant source of energy. Coal-fired power generation in India in April increased to 164.9 average gigawatts, compared with 160.7 average gigawatts last year, according to data shared by S&P Global Energy. According to the data, coal-fired power generation rose sequentially by 5.6 average gigawatts, or 3.5%, in April. About 4% of India’s installed power generation capacity is gas-fired and runs on liquified natural gas, of which about 60% is imported through the Strait of Hormuz. Higher coal burn The higher liquid natural gas prices have also made gas-based power generation economically unviable, said Girish Madan, director of corporate ratings at Fitch Ratings in Singapore. “So, coal-based power needs to share a higher burden in these peak summer months,” he added. Electricity demand in India is rising as temperatures surge amid heatwaves. On April 27, data compiled by New Delhi-based air quality and temperature monitoring platform AQI showed that all 50 of the world’s hottest cities were in India. “Heatwave conditions, with readings above 40-45 degrees C (Celsius), across several places in India have lifted power demand,” Andre Lambine, lead APAC short-term power and renewables research at S&P Global Energy, told C