India renewable power output grows at fastest pace in three years
Renewable power output jumped 24.4% to 134.43 billion kilowatt hours (kWh) for January-June 2025, according to a Reuters analysis of daily load despatch data from the federal grid regulator.
The share of renewables, excluding hydropower, hit a record high of more than 17% in June.
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Coal-fired generation, still India's dominant electricity source, fell nearly 3% in the first half as overall power output growth slowed to 1.5%. Electricity output grew 5.8% in 2024.
A milder summer, due to an earlier-than-expected monsoon, and slowing economic activity have reduced coal demand, resulting in record domestic stockpiles and lower imports by the world's second-largest consumer of the fossil fuel behind China.
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Renewable generation will continue to grow, with India expected to add 32 gigawatts (GW) of renewable capacity this year, compared with about 28 GW in 2024, said Vikram V, vice president of corporate ratings at Moody's unit ICRA.
India has already added 16.3 GW of wind and solar capacity in the five months through May, government data showed.
The South Asian nation has accelerated wind and solar additions after a prolonged slowdown that led to it missing its 2022 target of 175 GW. It now aims for 500 GW of non-fossil fuel capacity - including hydro and nuclear - by 2030, nearly double the current 235.6 GW.
"We believe this is achievable, but in our base case, the target may shift to 2032," S&P Global Commodity Insights said in a note, adding that grid modernisation and
energy storage investments
are critical to support renewable integration.
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