Pace of electricity production slowest after COVID
New Delhi| The country’s electricity generation has grown at the slowest pace since Covid in 2024 due to the slowdown in the economy. According to the data, electricity generation has increased by 5.8% annually to 1,824.13 billion kilowatt hours in 2024. Growth in output averaged 2.3 per cent in the second half of the year, almost a quarter of the 9.6 per cent growth of the first half.
According to the data, the decrease in electricity generation was in line with the moderation in the economy, which grew at the slowest pace in almost two years during the quarter ended September 30. Manufacturing activity in December grew at its weakest pace in the year amid weak demand. Analysts, however, expect consumption to grow at 6 to 7 per cent in 2025, driven by increased industrial activity and residential electricity use due to adverse weather. Demand has already increased with mercury levels falling in December and increased use of heating equipment. Slow growth in electricity demand and a record 12.1 per cent increase in the share of renewable energy in production helped the world’s third largest greenhouse gas emitter gain a three-year lead in the share of coal.
Analysts expect the share of both coal and renewable energy to rise this year at the expense of natural gas-fired power, which rose 17.3 percent last year. The renewable sector also saw slow growth this year. Total solar generation increased by 18.4 per cent which is the lowest since international commitments by India to fight climate change in 2015.
