India’s power-sector emissions flat for two years due to clean-energy surge

Submission Statement: A surge in clean energy has kept carbon dioxide (CO2) emissions in check across India’s power sector, with no growth from the first half of 2024 to the same period in 2026. This is the first time in more than 50 years that there has been no growth in India’s coal power over a two-year period, even as electricity demand grew overall.

India is accelerating investment in energy storage, which will support further growth in clean power. The National Electricity Plan projected a requirement of 82 gigawatt-hours (GWh) of energy storage capacity by 2026-27 and 411GWh by 2031-32.

Electric vehicle (EV) adoption in India is also gaining momentum, with EVs adopted in a widening range of categories, such as in Delhi, where an EV policy was launched to accelerate electrification of the vehicle fleet, with a particular focus on two-wheelers, three-wheelers (auto rickshaws), commercial vehicles and high-mileage segments, alongside expanded charging infrastructure. Higher EV adoption rates will moderate the growth in emissions from petrol consumption in India. 

Gujarat saw both the largest reduction in fossil-fuel generation and the largest expansion in clean power. After Gujarat, the largest increases in clean-power generation were seen in Rajasthan and Tamil Nadu, which also saw reductions in power generation from fossil fuels.

Several other states saw declines in fossil-fuel generation due to higher net imports, rather than local clean power. These included Madhya Pradesh, West Bengal and Punjab. 

Karnataka and Andhra Pradesh also succeeded in increasing clean-power generation faster than power demand, thereby contributing to keeping fossil fuel-based power generation stable nationwide across the two-year period. However, they exported much of the increase and consequently saw local increases in power generation from fossil fuels.

The two states with the largest increases in power demand, Maharashtra and Telangana, managed to almost match the rise with growth in clean-power generation.