India’s solar growth slows to 6-year low in H1 ’24

India’s solar power generation in the first half of 2024 grew at the slowest rate in six years, according to data from the federal grid regulator.

Solar output increased by 14.7 per cent year-on-year to 63.6 billion kilowatt-hours (kWh), significantly lower than the 18.5 per cent growth seen in 2023.

In contrast, coal-fired power generation surged by 10.4 per cent, outpacing the overall electricity generation growth of 9.7 per cent during the same period. The share of coal in India’s power output climbed to 77.1 per cent, up from 76.6 per cent last year, marking the fourth consecutive annual increase.

This shift comes as India, the world’s fastest-growing major economy, prioritises coal to address soaring power demand, a trend mirrored by other Asian nations such as Indonesia, the Philippines, Vietnam, and Bangladesh.

The country is projected to see a total electricity generation increase at the fastest rate in over a decade by the end of the fiscal year in March 2025, driven by an anticipated 8.9 per cent rise in coal-fired power output, compared to 8.2 per cent growth in renewable energy.

However, analysts expect a rebound in renewable energy growth in the next fiscal year, with significant increases in project tendering and commissioning. Moody’s unit ICRA forecasts a 33 per cent rise in renewable energy installations, reaching 25 gigawatts (GW) by the end of the fiscal year in March 2025.

Attribution: Reuters.