India’s Power Sector Sees First Mid-Year CO₂ Drop in Five Decades

India’s electricity sector recorded a rare year-on-year drop in carbon emissions in the first half of 2025, according to the Centre for Research on Energy and Clean Air (CREA). This marks only the second emissions decline in nearly 50 years, excluding the pandemic-driven dip of 2020, highlighting a pivotal moment as clean energy deployment outpaced electricity demand growth for the first time.

Key Drivers: Clean Energy Growth and Mild Weather

CREA’s analysis attributes 65% of the emissions reduction to slower electricity demand — driven by mild temperatures, high rainfall, and a slowdown in industrial activity. Another 20% came from record additions in solar, wind, hydro, and nuclear capacity, with 25.1 GW of non-fossil capacity added — a 69% increase over the previous year. Advanced hydropower contributed the remaining 15%.

Despite a 9 TWh rise in total power generation, fossil-based electricity fell by 29 TWh, as renewables and nuclear filled the gap.

Looking Ahead: Peak Emissions Before 2030?

Experts highlight India’s 234 GW renewable capacity and 5.2 GW of new nuclear under construction as evidence that power sector CO₂ emissions could peak before 2030, provided clean capacity growth and efficiency measures continue. Historically responsible for half of India’s emissions growth, bending the electricity sector curve is crucial for both national and global climate goals.

Long-Term Challenges: Storage and Grid Modernization

The decline is partly attributed to temporary weather conditions. Sustaining reductions will require massive investment in battery storage, pumped hydro, advanced power management, and a smarter grid capable of balancing variable renewables with rapidly rising demand — projected to quadruple by 2050. Without these measures, emissions could rebound as India’s electricity use and electrification accelerate.