New Delhi, 08/01/2025: India’s electricity generation grew at its slowest rate in 2024 since the COVID-19 pandemic, mainly due to a slowdown in the economy. Power output rose by 5.8%, reaching 1,824.13 billion kilowatt-hours (kWh), according to data from Grid-India, the country’s federal grid regulator.
In the second half of the year, power generation growth slowed down significantly, averaging only 2.3%, compared to 9.6% in the first half. This slowdown is linked to the economy, which grew at its slowest pace in nearly two years during the quarter ending on September 30.
India’s economy has not recovered quickly, with manufacturing growth in December being the lowest of the year due to weak demand. However, experts expect electricity demand to rise in 2025, driven by colder weather and increased industrial and residential use, with growth projected at 6% to 7%.
While electricity demand slowed, renewable energy, like solar and wind, reached a record 12.1% of the power mix, slightly reducing coal’s share to 74.4%. However, the growth in renewable was slow, with solar growing by just 18.4% and wind power declining for the first time since 2020. Hydro power output increased by 4%, though its share of total power generation fell to 8.6%.
In 2025, coal and renewable are expected to grow, while natural gas-fired power is predicted to decrease.
