India’s solar power generation grew at the slowest pace in six years in the first half of 2024.

A review of daily load despatch data from Grid-India revealed that the country stepped up reliance on coal to address surging power demand.

As per the analysis, the amount of electricity generated from coal increased by 10.4% during the six months ended June 30, surpassing the growth of 9.7% in total power generation during that time.

Three reasons why India’s reliance on coal has increased:

• India has made coal a priority in order to meet the spike in power demand in recent years. Last year, coal-fired power output surpassed renewable energy output for the first time since the 2015 Paris Agreement, Grid-India said.

• The share of the fossil fuel in power output rose to 77.1 percent in the first half of 2024, compared with 76.6 percent in the same period last year, putting it on track to rise for the fourth straight year.

• Following the Covid-19 pandemic, India’s fuel consumption has largely followed regional trends, with countries like Bangladesh, Indonesia, the Philippines, and Vietnam burning coal for cheap power.

Back to solar?

India’s total electricity generation during the fiscal year ended March 2025 is forecast to be powered by an 8.9 percent growth in coal-fired power output, outpacing renewable energy growth of 8.2 percent

However, analysts expect renewable power generation to grow faster from the next fiscal year, as tendering and commissioning of green energy projects have started picking up steam.

In the first half of 2024, India, the third largest solar power producer, generated 63.6 billion kilowatt-hours, a 14.7% increase from the previous year and 18.5% from 2023.