India's current electricity consumption is heavily reliant on fossil fuels, with more than 70% derived from this source, dominated by coal, contributing to 68% of the total electricity. Such high dependency on fossil fuels poses significant challenges, primarily due to their contributions to climate change and air pollution. However, promisingly, India has embraced a shift towards cleaner, low-carbon energy sources, which now account for nearly 29% of the total electricity. Solar energy produces around 9% of electricity, followed by hydropower at close to 9%, and wind contributing over 6%. Nuclear energy, often overlooked in discussions of clean power, contributes close to 3% and plays an essential role in providing reliable, low-carbon electricity. Gas and biofuels also account for a small portion of the mix, with each generating around 2% of the electricity.

Is Electricity Growing in India?

The modest growth in India's electricity consumption is highlighted by the latest figures, showing a slightly increased total of 1355 kWh per person compared to the previous record in 2025 of 1352 kWh. This minimal increase underscores a concerning stagnation, given the tremendous potential and need for growth, especially in the realm of high-demand electrification and the burgeoning AI industry requirements. However, there is a notable rise in low-carbon electricity generation, which grew by 13 kWh to reach 390 kWh per person, reflecting a conscious effort to transition towards sustainable sources. This advancement signals a positive, albeit slow, movement towards enhancing India's energy portfolio with green solutions.

Suggestions

To further accelerate the shift towards low-carbon electricity, India can look to successful initiatives by other regions. Countries like France and Slovakia derive more than half of their electricity from nuclear power, an energy source that India should continue to expand due to its reliability and minimal environmental footprint. Meanwhile, Denmark and Iowa demonstrate the substantial potential of wind energy, accounting for around 60% and 57% of their electricity, respectively. Additionally, states like Nevada and California are leaders in solar power generation, with solar contributing more than 30% of their electricity. Learning from these regions, India can prioritize expanding solar and wind capacities, alongside developing nuclear infrastructure, to significantly bolster its low-carbon electricity generation.

History

Historically, India has seen varying trends in low-carbon electricity generation across different energy types. In the mid-2000s, there was a notable increase in hydropower, exemplified by a rise of around 17 TWh in 2005 and similar increases in subsequent years. The 2010s witnessed the emergence of wind and biofuels, with substantial growth in 2016. Solar power saw significant boosts, particularly in the late 2010s and early 2020s, with growth surges of over 14 TWh in 2018 and again in the early 2020s. However, 2023 marked a downturn for hydropower, with a notable decline of 25 TWh, which is a crucial reminder of the need to diversify India's low-carbon energy sources further. Overall, India's commitment to increasing solar and other low-carbon energy production provides a hopeful but urgent call to action for future energy policy and investment strategies.

Electricity Imports and Exports

Balance of Trade

* 12M = Last 12 months (Apr 2025 – Mar 2026) — a rolling 12-month period, not a calendar year.