Image: American Public Power Association via Unsplash
India’s solar power generation expanded at its slowest rate in six years during the first half of 2024, according to a data analysis from the federal grid regulator. The country increasingly relied on coal to meet rising power demand.
Data from Grid, India’s daily load despatch review, indicated that electricity generated from coal grew by 10.4% in the six months ending on June 30, surpassing the overall power generation growth rate of 9.7% for the same period.
Solar power production, despite its slow pace, increased to 63.6 billion kilowatt-hours (kWh) in the first half of 2024. This represents a 14.7% rise compared to the same period last year and an 18.5% increase over the full year of 2023.
India, the world’s fastest-growing major economy, has prioritised coal to meet surging power demand in recent years. In 2023, coal-fired power output exceeded renewable energy output for the first time since the Paris Accords in 2015.
The trend in India aligns with regional patterns seen in Indonesia, the Philippines, Vietnam and Bangladesh, where coal usage for power generation has increased to produce cheaper electricity. The share of coal in India’s power output rose to 77.1% in the first half of 2024, up from 76.6% in the same period last year, marking the fourth consecutive year of increase.
According to recent research, global coal-fired power capacity showed its highest surge since 2016, with growth primarily attributed to new construction in China and delays in decommissioning projects elsewhere.
India projects total electricity generation for the fiscal year ending March 2025 to grow at the fastest pace in over a decade. This growth is anticipated to be primarily driven by an 8.9% increase in coal-fired power output, outstripping the 8.2% growth in renewable energy.
Analysts predict that renewable energy generation will accelerate from the next fiscal year, as tendering and commissioning of green energy projects gains momentum. Moody’s unit ICRA forecasts that India’s installed renewable energy capacity, excluding large hydro plants, is estimated to increase to 170 GW by March 2025.
