The basic reason that the Sun gets a bit more luminous while fusing hydrogen in its core is that as helium builds up in the core, some of the free electrons get, in effect, gobbled up into neutrons. Reducing the free electrons allows light to escape more easily, raising the luminosity. But when hydrogen runs out in the core, fusion commences instead in a shell outside the core, and this fusion has a very different character because its temperature is not self-regulated, like core fusion, it is set by the escape speed at the edge of the inert helium core. That tends to be way higher than the self-regulated core fusion temperature, especially as helium piles up in the core, so the fusion rate in the shell just goes nuts. That's not a sustainable situation, so the only way to return the star to an equilibrium state is to drastically lower the pressure, and the amount of hydrogen, in the shell. That happens when the huge release of fusion energy causes the envelope of the star to expand, and an expanded envelope weighs much less, so the pressure in the shell ends up dropping dramatically and that gets the fusion rate under control. So you see, ironically, the luminosity of a red giant is so large because of the need to keep it from getting incredibly large.