New Delhi, Jan. 19 -- The share of thermal power in India's electricity generation is expected to fall below 70% in the next financial year for the first time, driven by slower growth in power demand and a sharp rise in renewable energy (RE) generation, according to a report by Crisil Ratings.

Crisil Ratings estimated that thermal power's share will decline to about 72% in the current fiscal from nearly 75% in FY25, before slipping further below the 70% mark next year. As a result, plant load factors (PLFs) of thermal power plants are projected to moderate to 64-66% in the current and next fiscal, compared with 69% in FY25.

Growth in power demand is expected to decelerate to 1-2% this fiscal because of an early monsoon and a relatively ...