Solar generation: India’s solar generation grows at slowest pace in six years in first half of 2024

India’s solar power output grew at its slowest rate in six years in the first half of 2024, according to an analysis of data from the federal grid regulator, and the country further increased its use of coal to meet rising electricity demand.

Coal-fired electricity generation rose 10.4% in the six months to June 30, outpacing the overall growth in electricity generation during the period, according to Grid-India’s review of daily load data.

Solar energy production at the third-largest solar electricity producer rose to 63.6 billion kilowatt-hours (kWh) in the first half of 2024, up 14.7% from the same period last year and 18.5% in calendar year 2023.

The world’s fastest-growing major economy has prioritized coal to meet rising electricity demand in recent years. Last year, electricity production from burning coal outpaced that from renewables for the first time since the 2015 Paris Agreement.

The South Asian country’s fuel consumption patterns since emerging from the COVID-19 pandemic have largely mirrored regional trends, with Indonesia, the Philippines, Vietnam and Bangladesh all burning coal to generate cheap power.

The share of fossil fuels in power generation rose to 77.1% in the first half of 2024 from 76.6% in the same period last year, marking a fourth consecutive year of growth. India expects total electricity generation in the fiscal year ended March 2025 to grow at the fastest pace in more than a decade, forecast to be driven mainly by an 8.9% increase in coal-fired power generation, outpacing an 8.2% increase in renewable energy. Analysts expect renewable energy generation to grow faster from the next fiscal year as tendering and launches of renewable energy projects have begun to gain momentum.

Moody’s ICRA unit predicts renewable energy installations will grow by more than a third to 25 gigawatts (GW) in the fiscal year ending March 2025.