India Reaches Milestone: 12% of Electricity Now From Renewables

India's Growing Energy Dependence and Renewable Energy Progress: Report Summary of the Recent Report

India has grown energy import dependence and growing reliance on crude oil, whereas there has been significant progress in the area of renewable energy, according to the recent report of the Ministry of Statistics and Programme Implementation on India's energy sector. According to the report Energy Statistics India 2025, India's crude dependence has increased to 88.9% as of FY24 from 83.5% as of FY15. On the other hand, the share of renewable energy, excluding large hydro, in the overall basket of electricity generation has increased to 12.1% in FY24 from 5.96% in FY15. The increase is because the country is still in the process of diversifying its energy resources and moving towards cleaner energy. India's renewable energy sector has grown tremendously over the last nine years.

The gross electricity generation from renewable resources of the country has gone up to 370,320 GWh in FY24 from 205,608 GWh in FY15, reflecting a compound annual growth rate (CAGR) of 6.76%. Renewable capacity installed passed 210 GW in the first half of the year, and renewables currently supply almost 47% of the country's total energy mix. Yet, despite all this, issues such as weak transmission lines and the absence of energy storage facilities still limit the maximum utilization of the capacity. In the same vein, the report is also reporting Indian electricity growth consumption, which is spearheaded by the industry in terms of large consumption.

Industry used 42% of all electricity use in FY24, followed by the domestic segment on 24%, the agriculture sector on 17%, and then the commercial segment on 8%. Per-capita consumption of energy has risen by 25.4% over the last ten years and was set at 18,410 megajoules per capita. Although there has been expansion in renewable sources of energy, coal remains one of the primary sources of energy, generating nearly 79% of the entire domestic energy supply in FY24. The report also brings India's growing dependence on energy imports into the spotlight. The import of crude has increased significantly now covering 88.9% of India's oil needs during FY24 versus 83.5% of FY15. Similarly, dependence on natural gas imports has jumped to 46.6%, from 35.6% during the corresponding period. At the other end, coal dependence on imports fell marginally to 25.9% of FY24 compared to 28.7% of FY15, some alleviation in national energy self-reliance.

With India facing increasing electricity demand and increased energy imports, experts concur that augmenting the capacity of renewable energy, developing transmission interconnectivity, and enhancing energy storage systems are important measures to ensure an independent and sustainable energy future. These measures not only will meet the increasing electricity demands but also reduce India's reliance on imports, and thus ensure energy security and economic stability.

Conclusion

India's power sector is undergoing a transition to an increasing share of renewable power in the basket.
The nation continues to remain very much dependent upon crude oil and natural gas imports, and it is something which contributes towards the imperative to invest in the infrastructure for renewable energy, such as transmission and storage grid. Despite great efforts put to install renewable power equipment, India makes all the attempts possible in order to meet emerging energy requirements without the importation of foreign energy during upcoming years.

Source: Ministry of Statistics and Programme Implementation, Energy Statistics India