For the first time in the last 58 years, or since 1966, the input of coal in total power capacity dropped below 50 percent. At the same time, renewable energy contributed 71.5 percent of the record 13,669 megawatts (MW) power generation capacity added by India in the January-March period, according to the latest report.
A quarterly report — POWERup– published by the Institute for Energy Economics and Financial Analysis (IEEFA) states that this new feat of renewable energy power generation marks an early victory and aligns with the Indian government’s ambition of achieving 50 percent cumulative power generation capacity from non-fossil fuel-based sources by 2030.
The decline in coal contribution in power generation is seen in G7 countries, with demand touching record lows in 2023, levels not witnessed since 1900, said IEEFA, JMK Research & Analytics, and Ember, an energy think tank, in a joint press release.
As 2024 presses as a crucial year in the global transition diverging from fossil fuels. India is a forerunner in seizing the Net Zero greenhouse gas emissions targets.
Large-scale renewable energy projects in India have drawn greater attention, as evidence shows tender issuances breaching a record 69 gigawatts (GW), according to a report, Utility-scale renewable energy tendering trends in India, released this week by IEEFA and JMK Research.
The tenders issued for utility-scale renewable energy projects in FY24 outshone the government’s zealous target of 50GW.
“After a slump from 2019 to 2022 due to supply-chain issues and global price spikes brought on by the COVID-19 pandemic and Russia’s invasion of Ukraine, the market has rebounded and gone from strength to strength,” said Vibhuti Garg, Director – South Asia, IEEFA.
“There is strong investor interest in the Indian utility-scale renewable energy market. The primary reasons are the large-scale potential for market growth, central government support in terms of targets and regulatory frameworks, and higher operating margins,” added Garg.
Per Ember’s fifth annual Global Electricity Review of 80 countries, India stands third in the world’s solar power generation rankings, a notch behind China and the US.
Electricity generated by solar energy has continued to be a popular source for almost two decades, adding over twice the electricity compared to coal last year, per the press release.
“India had the world’s fourth-largest increase in solar generation in 2023 (+18 teraWatt hours/TWh), behind China (+156TWh), the US (+33TWh) and Brazil (+22TWh). The top four countries accounted for three-quarters of solar growth in 2023,” it added.
The report mentioned that since 2000, the contribution of renewables in electricity generation has expanded from 19 percent to over 30 percent, with solar and wind energies taking the lead. Wind and solar grew from 0.2 percent in 2000 to 13.4 percent in 2023.
India, however, on the other hand, has not been able to decrease its dependence on coal, the report noted. Adverse weather conditions and surging power demand puts India in a tight spot. It poses hardships for the country to shift to other sources and discontinue satisfying 70 percent of its electricity generation from coal, it added.
“The situation is unlikely to change this year, with the Central Electricity Authority expecting a shortfall in hydropower, leading to power shortages, especially during the night when solar is offline,” it said.