India’s clean electricity sources are also on track to provide a third of its utility electricity for the first time over the next month or so, thanks to record combined output from renewables, hydro and nuclear assets, data from Ember shows.

The steep build in home-grown clean electricity comes just as India faces unprecedented scrutiny over its energy import practices, particularly its heavy reliance on sanctioned Russian oil that has triggered stiff new tariffs from the United States.

India also faces pressure to boost imports of U.S. LNG as a means to reduce its trade deficit with the United States, but has steadily reduced its reliance on gas for power as clean energy output has increased.

Continued growth in clean generation – alongside rising homemade production of clean energy tech such as solar panels and battery systems – may help India limit its reliance on foreign-sourced fossil fuels while continuing to expand its overall energy generation.

NEW PEAK

Over the first half of 2025, India’s utilities generated a record 236 terawatt hours (TWh) of clean electricity, data from Ember shows.

That total is 20% more than during the same months in 2024, and allowed utilities to curb generation from fossil fuels by 4% from the year before to around 691 TWh.

A 29% jump in wind generation (to 47.2 TWh) and a 25% rise in solar generation (to 85 TWh) were the main drivers of the advance in clean electricity supplies.

Record output from India’s nuclear fleet – to 29 TWh – and a 14% year-over-year climb in output from hydro dams also helped lift the overall clean supply total.

On the fossil fuel side of the generation ledger, coal-fired electricity supplies dropped by 3% from the year before to 675 TWh, while gas-fired electricity output shrank by 34% to 13.75 TWh.

SEASONAL SWAY

The collective upswing in multiple clean generation sources is leading to clean power grabbing a record share of India’s generation mix, which will likely exceed 30% for the months of July, August and September.

The average clean generation share through the opening half of 2025 was 25%, compared to an average of 21% for the same months in 2024.

In June, clean power sources accounted for 31% of the overall generation mix, which was the highest reading on record for that month and meant the share from fossil fuel sources dropped below 70% for the first time.

Data on India’s generation during July and August has yet to be released, but clean power sources are likely to have secured even larger shares of the overall mix during that period as wind and hydropower output tends to hit annual peaks around then.

Over the first half of 2025, total clean generation from all sources was around 24% more than average generation levels from India’s clean generation assets during the same months from 2022 to 2024.

If wind and hydro production rise as expected during July, August and September, total clean electricity production in India will smash previous records this year and may set the stage for even steeper cuts to fossil fuel generation going forward.

Given the fast pace of electricity demand growth in India, utilities are likely to continue adding coal-fired generation capacity to the generation system to ensure that overall electricity supplies keep up with consumption.

But with solar and wind capacity expected to continue growing at a faster pace, the share of fossil fuels within India’s overall generation mix may be close to peaking, which would mark a major milestone for India’s fast-growing energy system.

An established peak in the share of fossil fuels in electricity generation could then trigger a potential decline in fossil fuel imports and use, and reduce the pressure on India to succumb to international pressure on oil and gas import trends.

Reference : https://www.reuters.com/markets/commodities/india-cuts-fossil-electricity-output-clean-generation-hits-new-peak-2025-09-02/?utm_

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WHY IT’S IMPORTANT

A target was set at the COP28 U.N. climate conference in 2023 to triple the amount of renewables, such as wind and solar, to keep a 1.5 degree Celsius (2.7 Fahrenheit) warming limit this century within reach.

BY THE NUMBERS

Last year, 582 gigawatts of new renewable energy capacity, such as hydropower, solar, wind and geothermal, was added globally. This was nearly 20% higher than in 2023. Around 91% of the utility-scale projects commissioned were more cost effective than fossil fuel alternatives, the report said.

Solar photovoltaic (PV) was 41% cheaper on average than the lowest-cost fossil fuel alternatives, such as gas, while onshore wind projects were 53% cheaper.

The cost of battery energy storage systems has declined by 93% since 2010, the report added.

CONTEXT

The costs of renewable technologies have been decreasing since 2010 due to technological advances and economies of scale.

Continued reductions are expected but challenges in the short term have come from issues such as geopolitical tensions, trade tariffs and bottlenecks in raw material production and procurement, which could temporarily drive up costs, IRENA said.

KEY QUOTE

“Looking at all renewables currently in operation, the avoided fossil fuel costs in 2024 reached up to $467 billion. New renewable power out competes fossil fuels on cost, offering a clear path to affordable, secure, and sustainable energy,” said Francesco La Camera, director general of IRENA.

“However, this progress is not guaranteed. Rising geopolitical tensions, trade tariffs, and material supply constraints threaten to slow the momentum and drive-up costs,” he added.

Reference : https://www.reuters.com/business/energy/around-90-renewables-cheaper-than-fossil-fuels-worldwide-irena-says-2025-07-22/

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