India Ranks Third Globally in Power Generation Growth, Driven by Renewables and Rising Demand – EQ
In Short : India recorded the world’s third-highest growth in power generation over the past five years, after the US and China, according to the IEA. Driven by rising demand and renewable investments—especially in solar—India nearly doubled its wind and solar output. Despite growth in clean energy, coal remains dominant, though renewables now account for over 70% of new capacity additions.
In Detail : India has emerged as the third-fastest-growing country in power generation over the past five years, trailing only the United States and China, according to a recent report by the International Energy Agency (IEA). This growth reflects India’s rapid infrastructure development and its efforts to meet rising electricity demand.
A major driver of this growth has been the country’s significant investments in renewable energy, particularly solar and wind. Clean energy accounted for nearly 83% of power sector investments in 2024, leading to a near doubling of wind and solar power generation during the five-year period.
Despite the progress in renewables, coal continues to play a dominant role in India’s energy mix. Two-thirds of the increased electricity demand was met by coal-fired power, and new coal capacity is still being added, even as the share of renewables in new capacity additions continues to grow.
In the first quarter of 2024, over 70% of new capacity added in India came from renewable sources. This shift indicates a strong momentum toward cleaner energy, though balancing it with the country’s continued reliance on coal remains a challenge.
India’s power demand has surged significantly due to factors such as industrialization, rising household consumption, extreme weather events, electric vehicle adoption, and the expansion of data centers. In 2024, peak demand reached 250 GW, marking a nearly 70% increase over the last decade.
Looking ahead, the IEA forecasts India will add 205 GW of renewable energy capacity by 2028, doubling its 2022 levels. The country is also expected to see the highest percentage growth in nuclear power generation between 2022 and 2025, further diversifying its energy mix.
