Electricity in India in 2023/2024

Between August 2023 and July 2024, electricity generation in India has been heavily reliant on fossil fuels, with more than three-quarters, approximately 77%, coming from these sources. Within the fossil category, coal stands out as the most dominant at about 73%. In contrast, low-carbon sources account for less than a quarter, around 23%, of India's electricity. Among the low-carbon group, hydropower is the leading contributor at roughly 7.5%, followed by solar power, which forms close to 6.6%. Wind energy accounts for about 4.8%, while nuclear energy contributes approximately 2.6%. Biofuels make up about 1.9%, marking themselves as a minor component of India's low-carbon electricity generation. This highlights the need for India to diversify and improve its low-carbon electricity output to address issues such as climate change and air pollution caused by fossil fuel dependency.

Suggestions

To substantially increase its share of low-carbon electricity, India should focus on expanding its solar and wind capacities, while aggressively developing its nuclear energy infrastructure. Successful models around the world show the benefits of these technologies. For instance, France generates almost 67% of its electricity from nuclear energy. Countries like Denmark and Uruguay have achieved significant wind energy production with 59% and 36%, respectively. Given India's abundant sunlight and wind, these examples provide valuable lessons. The strategic promotion and investment in these green energy sectors can help India reduce its reliance on coal and other fossil fuels, leading to a more environmentally sustainable and secure energy future.

History

Historically, India's shift towards low-carbon electricity has seen various phases of development. Hydropower was a major focus during the late 20th century, with substantial capacity increases noted in 1988, 1998, 2003, 2005, and again significant surges in 2013 and 2019. However, there were critical fluctuations, notably a significant decline in 2012 and a pronounced drop in 2023. On the brighter side, the last decade has witnessed a notable rise in solar energy, with marked increases since 2017, peaking beautifully at over 26.9 TWh in 2022. Wind energy also saw a promising boost with a 12.1 TWh increase in 2023. India's journey towards a low-carbon electricity structure demonstrates a robust potential for renewable expansion, particularly highlighting the need for consistent investment and policy support to harness and maximize these clean energy sources.

Electricity Imports and Exports

Balance of Trade

Data Sources