NEWS

• For the first time outside COVID years, India’s electricity sector witnessed a decline in carbon dioxide (CO2) emissions during January–June 2025.
• Analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief indicates a 1% drop compared to the same period in 2024.
• The electricity sector is India’s largest contributor to greenhouse gas emissions, responsible for nearly 40% of annual emissions.

HIGHLIGHTS

Reasons for Decline

• Milder summer and good monsoon rainfall reduced electricity demand, especially for air-conditioning, which constitutes ~10% of summer power consumption.
• Faster growth in renewable energy: India added 25.1 GW of clean electricity capacity, 70% more than the record set last year.
• Solar and wind energy, supported by storage solutions, increasingly meet peak electricity demand, limiting reliance on coal.

Renewable Energy Milestones

• India targets 500 GW of installed non-fossil electricity capacity by 2030, already achieving 252 GW.
• Projects in the pipeline could raise capacity to 482 GW, close to the 2030 goal.
• Non-fossil sources—including solar, wind, nuclear, and large hydro—now account for 50.1% of installed capacity, up from 30% in 2015.
• India has become the world’s third-largest producer of electricity from wind and solar, overtaking Germany in 2024.

Implications

• The decline suggests that India’s electricity sector emissions could peak by 2030, earlier than previously expected.
• A flat-lining of coal-based generation is possible as clean energy capacity grows faster than demand.
• This development aligns with India’s enhanced climate goals under the Paris Agreement, targeting 50% non-fossil fuel capacity by 2030.