India's Coal Share in Power Generation Capacity Falls Below 50% for the First Time Since 1960s

24 Dec 2024

In the first quarter of 2024, coal's share of India's total power generation capacity dropped below 50% for the first time since the 1960s. According to the latest quarterly report from the Institute for Energy Economics and Financial Analysis (IEEFA), renewable energy contributed to 71.5% of the record 13,669 MW of power generation capacity added by India during the January-March period of this year.

For the first time since the 1960s, coal, including lignite, now accounts for less than 50% of India's total power generation capacity. The report stated that the renewable energy trend is well ahead of India's goal to achieve 50% of its total power generation capacity from non-fossil fuel-based sources by 2030.

The reduction in coal's share of power generation capacity mirrors a global trend, with coal demand in G7 countries anticipated to hit a record low in 2023, a level not seen since 1900.

To speed up the transition, G7 nations pledged last month to phase out all unabated coal power generation by 2035, expanding on their earlier commitment to stop building new coal-fired power plants. The term "unabated" typically refers to the continued use of coal, oil, and gas without efforts to reduce emissions.

At the UN's COP28 climate change conference in last December, global leaders reached a ground-breaking agreement to transition away from fossil fuels that contribute to global warming and to triple the world’s renewable energy capacity by 2030. The report indicates that India issued a record 69 GW of renewable energy tenders in FY 2023-24, exceeding the central government's annual target of 50 GW.