Solar Energy Expansion Slows in Early 2024
India’s solar power generation grew at its slowest pace in six years during the first half of 2024, according to data from the federal grid regulator. This slowdown comes as the country increases its reliance on coal to meet rising power demand.
Coal-Fired Power Outpaces Renewable Energy
Electricity generated from coal rose 10.4% in the six months ending June 30, surpassing the overall power generation growth of 9.7% for the period. In comparison, solar power generation increased by 14.7%, reaching 63.6 billion kilowatt-hours (kWh), but this was a drop from the 18.5% growth in 2023.
India, the world’s fastest-growing major economy, has prioritized coal to tackle surging power demand. Last year, coal-fired power output outpaced renewable energy for the first time since the 2015 Paris Accord.
Regional Energy Trends and Future Projections
The shift in India’s energy use mirrors trends in other South Asian nations. Countries like Indonesia, the Philippines, Vietnam, and Bangladesh have also turned to coal for affordable power generation. As a result, coal’s share in India’s power output rose to 77.1% in the first half of 2024, up from 76.6% last year, marking the fourth consecutive year of increase.
India expects its total electricity generation for the fiscal year ending March 2025 to grow at the fastest pace in over a decade, driven mainly by an 8.9% increase in coal-fired power output. Renewable energy growth is projected at 8.2%.
Optimism for Renewable Energy Growth
Despite the current trends, analysts predict a faster growth rate for renewable energy starting next fiscal year. The tendering and commissioning of green energy projects are gaining momentum. Moody’s unit ICRA forecasts renewable energy installations will rise by over a third to 25 gigawatts (GW) by the end of March 2025.
This expected surge in renewable energy projects reflects a broader shift in energy market trends. As solar technology advances and investment in green energy policies increases, the solar energy market is poised for significant developments.
Source：vccircle.com
