India's power generation grew at an unprecedented rate of 11.5% in the last fiscal year 2022-23, the highest in 33 years, mainly driven by increase in coal-fired generation.

The summer heatwave and abnormal winter temperatures in some parts of India, combined with rapid economic recovery, have resulted in a sharp spike in electricity demand. In response, the Indian government boosted coal-fired and solar power generation to meet the rising demand and avoid power outages.

Data from India's power grid regulator showed that fossil fuel-fired power generation increased 11.2% year on year, the fastest growth in more than 30 years, with coal-fired generation increasing 12.4%. In contrast, natural gas-fired power generation experienced a 28.7% decrease due to high price.

Coal consumption at power plants is expected to increase 8% this fiscal.

In FY2022-23, India's total electricity supply reached 1,090 TWh, up 8.4% year on year, despite a 6.69 TWh supply gap.

Its coal-fired power generation increased to 1,163 TWh last fiscal, which contributed to a record high of 73.1% of total power generation since March 2019.

Renewable energy, such as solar, was increasing rapidly as well, with 187.1 TWh of renewable energy generated in the past fiscal year, up 21.7%, and the share of renewable energy in India's power generation (excluding large hydro and nuclear) rising to 11.8%.

With India's position as the world's third-largest emitter of greenhouse gases, this rapid increase in coal-fired generation poses many challenges to India in its efforts to ensure electricity security and decarbonization.

The Indian government hopes to increase the installed capacity of non-fossil energy (solar, wind, nuclear, hydropower and biomass) to 500 GW by 2030.

(Writing by Alex Guo  Editing by Emma Yang)
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