India's solar power generation experienced its slowest growth in six years during the first half of 2024, according to data from the federal grid regulator. In contrast, the country increased its reliance on coal to meet rising power demand.

Electricity generated from coal rose by 10.4% in the first half of 2024, outpacing the overall power generation growth of 9.7%, as shown by daily load despatch data from Grid-India.

Solar power generation increased to 63.6 billion kilowatt-hours (kWh) in the first half of 2024, up 14.7% from the same period last year. This growth rate is significantly lower than the 18.5% increase seen in 2023.

Coal's share in power output rose to 77.1% in the first half of 2024, compared to 76.6% in the same period last year, marking the fourth consecutive year of increase. India, the world's third-largest producer of solar electricity, has prioritized coal to cope with surging power demand. This trend aligns with regional patterns, as countries like Indonesia, the Philippines, Vietnam, and Bangladesh have also ramped up coal use for cost-effective power generation.

India anticipates the fastest growth in total electricity generation in over a decade for the fiscal year ending March 2025. This growth is expected to be driven primarily by an 8.9% increase in coal-fired power output, surpassing the 8.2% growth forecast for renewable energy.

Analysts predict a faster growth rate for renewable energy starting next fiscal year, as the tendering and commissioning of green energy projects gain momentum. Moody?s unit ICRA forecasts renewable energy installations to increase by over a third to 25 gigawatts (GW) in the fiscal year ending March 2025.

(Source: Moneycontrol)