Electricity in India in 2023/2024

Over the 12-month period stretching from October 2023 to September 2024, India's electricity consumption was heavily reliant on fossil fuels, with coal accounting for almost three-quarters of the total generation. Combined, fossil fuel sources made up more than three-quarters of India's electricity production. In contrast, low-carbon sources, including hydropower, solar, wind, nuclear, and biofuels, contributed to about 24% of electricity generation. Hydropower led among low-carbon sources at nearly 8%, followed by solar and wind at approximately 7% and 5% respectively. Nuclear energy made up about 3%, while biofuels contributed close to 2%. This distribution signifies a pressing need for India to pivot towards cleaner, more sustainable sources to mitigate pollution and combat climate change.

Suggestions

To bolster its low-carbon electricity generation, India can draw inspiration from countries that have successfully transitioned to greener energy. France, for instance, relies on nuclear power for a substantial 68% of its electricity generation. Slovakia and Ukraine also generate more than half of their electricity from nuclear sources. For India, expanding its nuclear capacity is critical, considering its substantial 1.4 billion population, which resembles the demographic and infrastructure challenges faced by countries such as France. In terms of wind energy, Denmark serves as an exemplary model, generating 59% of its electricity from wind. Similarly, countries like Lithuania and Ireland have achieved wind energy shares of around a third. By learning from these success stories, India could significantly increase its investments in nuclear and wind energy infrastructure to secure both its energy needs and environmental goals.

History

Historically, India's journey in establishing low-carbon electricity has seen ups and downs. The late 1980s and 1990s saw significant increases in hydropower generation, with notable expansions in 1988, 1998, and 2010. However, significant declines like the one in 2012 indicated inconsistencies in this sector. The last decade marked a pivotal transition towards solar energy, seeing sharp increments notably in 2017, 2018, and continuing into 2022, reflecting a growing commitment towards solar infrastructure. In 2023, there was a remarkable increase in solar and wind generation, which collectively mirrored India's efforts to enhance its clean energy capacity. Ironically, 2023 also witnessed a steep decline in hydroelectric production, marking fluctuations in this category but also emphasizing the necessity of diversifying low-carbon sources such as nuclear and wind to ensure a resilient electricity grid.

Electricity Imports and Exports

Balance of Trade

Data Sources