India's Solar Power Growth Slows as Coal Takes the Lead

India's solar strength generation noticed its slowest pace in six years at some point of first half of 2024, highlighting the kingdom's growing reliance on coal to fulfill surging strength needs, as according to an analysis of data from Grid-India, the federal grid regulator. Solar power generation is the 3rd largest producer of electricity as the output rose with the aid of 14.7% to 63.6 billion kilowatt-hours (kWh) compared to the same period last year & 18.5% growth recorded in 2023.

Meanwhile, electricity generated from coal surged via 10.4% within the first six months of 2024, outpacing the overall power generation growth of 9.7%. This shift underscores India's prioritization of coal to address its growing energy needs, a trend visible throughout several other Southeast Asian countries including Indonesia, the Philippines, Vietnam, and Bangladesh.

The share of fossil fuel power output climbed to 77.1% in the first half of 2024, up from 76.6% during the same period, putting in course for a 4th consecutive year of growing coal dependence, driven by the need for inexpensive and reliable power. In 2023, coal-fired power output surpassed renewable electricity production for the first time since the 2015 Paris Agreement, signaling a significant shift in the country’s energy landscape.

Since emerging of the COVID-19 pandemic, the south Asian country’s fuel consumption patterns have mostly followed regional trends such as:- Bangladesh, Indonesia, Philippines & Vietnam all our burning coal to provide cheaper coal.

India anticipates total electricity generation to grow at the fastest pace in over a decade by the end of the fiscal year in March 2025. 8.9% growth forecasted in increase in coal-fired power output, surpassing the 8.2% boom of renewable energy.

Despite the current slowdown in renewable energy growth, analysts expect renewable energy to grow faster from next fiscal year as tendering and commissioning of green energy projects have started gaining momentum. Moody's unit ICRA projects a substantial rise in renewable strength installations, forecasting more than 1/3 increase to 25 (GW) by the end of March 2025.

In conclusion, despite a slowdown in expansion of solar power, India is clearly dedicated to use coal to satisfy its burgeoning energy demands. A glimpse of optimism for a more balanced and sustainable energy future is provided in renewable energy projects. As India maintains to navigate its energy transition, the interaction among coal and renewable sources will be crucial in shaping the country's path toward sustainable development.

Thank you.

 Regards,

Muskaan Bhatter,

Kautilya, IBS Mumbai.