India is gearing up to boost its power generation output by a remarkable 9.3%, reaching 1,900 billion kilowatt hours (kWh) in the fiscal year ending March 2025. This leap marks the most rapid growth the country has witnessed since the fiscal year 2011/12, as per the federal power ministry’s internal projections.

Surging Ahead in Electricity Production

Since the pandemic year of 2020/21, India’s electricity production has seen a steady climb at an average annual rate of around 8%, outpacing any other major global economy. The country’s power demand has surged, fueled by intense heat waves and a rebound in economic activities.

Temperature spikes expected from April to June this year could push power consumption even higher. The weather office anticipates an increase in heatwave days during this period, adding to the rising power demand.

Despite global shifts towards renewable energy, India’s reliance on fossil fuel-fired power remains steadfast, with an estimated growth of about 9%. This sector will contribute over 76% to the total power output for the second year in a row. Specifically, coal-fired power generation is set to increase by 8.9%, while natural gas-fired power is projected to witness a 10.5% rise.

Renewables Grow but Lag Behind

In contrast, renewable energy sources are predicted to see a marginal increase, growing only by 8.2% to 244 billion kWh in 2024/25 – their slowest expansion in four years. This lag places India behind China, where wind and solar power grew by approximately 21% in 2023. Missing its 2022 renewable energy target of 175 GW has pushed India to continue its reliance on coal, slowing its transition from carbon-intensive power sources.

However, not all is bleak in the renewables sector. Hydropower is expected to rebound with a 10.3% growth after last year’s significant drop, the steepest in nearly four decades. The anticipated above-average rainfall during the monsoon season of 2024, which constitutes nearly 70% of the country’s annual rainfall, is set to positively impact hydropower generation.

Furthermore, nuclear energy is poised for a resurgence with an almost 16% increase due to capacity expansions in existing plants, indicating some progress towards diversifying India’s energy mix.

Balancing Growth with Environmental Concerns

The substantial output within the power sector of India highlights the nation’s struggle and strides in catering to its escalating energy needs while managing environmental impacts. This dynamic points to a critical juncture where India’s energy policies and investments will play a pivotal role in shaping its future sustainability and economic resilience.

Image Source: Linkedin (A Greener Economy)