India’s solar power production slowest in 6 years amid heatwave

India’s solar power output grew at its slowest pace in six years in the first half of 2024, as a heatwave boosted electricity demand in the country and forced more coal use.

Solar power production rose to 63.6 billion kilowatt-hours (kWh) in the first half of 2024, up 14.7% from the same period last year, according to Grid-India data.

This was much slower than the 26 percent increase in solar power generation in the first half of 2023, which made India the world’s third-largest producer of solar electricity.

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Meanwhile, coal-fired electricity generation rose 10.4% in the six months ended June 30, outpacing the overall electricity generation growth of 9.7% in the period.

The rise in India’s reliance on coal came amid one of the longest heatwaves ever to hit the country, with temperatures exceeding 50 degrees Celsius (122 degrees Fahrenheit) in some parts of the country.

The heatwave — the worst in more than a decade — has led to a huge increase in energy demand. Peak power demand in India’s hot, dry northern plains hit a record last month amid the heat.

India’s government said last month that demand for electricity generated from coal rose 7.3% this fiscal year, reaching an all-time high.

Coal will overtake renewable energy

India expects annual energy production in the fiscal year ending March 2025 to grow at its fastest rate in more than a decade.

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.

This trend is likely to continue in the current fiscal year as the Narendra Modi-led Indian government is forecasting an 8.9% increase in coal-based power generation during the year.

This will be 8.2% more than the growth in renewable energy.

Meanwhile, in an unprecedented move, the Indian government has asked energy companies to order $33 billion worth of equipment this year to accelerate the expansion of coal-fired power plant capacity in the coming years.

The rush to add new coal-fired plants comes as the country struggles to meet high energy demands during non-solar hours using existing plants.

It also highlights the challenges the world’s third-largest greenhouse gas emitter faces as it tries to transition its economy away from coal while trying to ensure energy security for India’s roughly 1.4 billion people.

Economic growth

Apart from heatwaves, the increase in economic activity following the pandemic is also contributing to the increase in electricity demand in India.

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 affordable power.

However, analysts predict that renewable energy production will grow faster from the next fiscal year as tenders and green energy project launches gain momentum.

According to JMK Research, India saw an 18 per cent increase in new utility projects in the fiscal year ending March 2024.

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.

• Reuters, with additional information from Vishakha Saxena

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