Fuelled by coal, India's power output grows at fastest pace in 33 years

India's power generation grew the fastest in over three decades in the just-ended fiscal year. The surge was driven by many factors, including intense summer heatwaves, a colder-than-usual winter in northern India, and an economic recovery, according to a Reuters report based on government data. The increase in electricity demand also forced India to ramp up output from coal plants and renewable energy sources, leading to concerns about rising emissions.

Record-Breaking Power Generation

Power generation rose 11.5% to 1,591.11 billion kilowatt-hours (kWh), or units, in the fiscal year ended March 2023, with both coal-fired and renewable plants hitting records. Output from plants running on fossil fuels rose 11.2%, the quickest growth in over three decades, thanks to a 12.4% surge in electricity production from coal. This increase offset a 28.7% decline in generation from cleaner gas-fired plants as a global spike in liquefied natural gas (LNG) prices deterred usage.

Rising Coal Use

In the new fiscal year that began on April 1, Indian power plants are expected to burn about 8% more coal. The rapid acceleration in India's coal-fired output to address a spike in power demand underscores challenges faced by the world's third-largest greenhouse gas emitter in weaning its economy off carbon as it attempts to ensure energy security to around 1.4 billion Indians. India's Central Electricity authority estimates that 1 million kWh of power produced from coal generates 975 tonnes of carbon dioxide, while the same amount of power generated from gas produces 475 tonnes. A plant fired by lignite, known as brown coal, emits 1,280 tonnes to produce equivalent power.

Wide Power Deficit

The total power supplied during the last fiscal year was 1509.15 billion kWh, 8.4% higher than a year earlier but still 6.69 billion units short of demand, the widest deficit in six years. Electricity generated from coal rose to 1,162.91 billion kWh, with its share in overall output rising to 73.1% - the highest level since the year ending March 2019.

Emissions Concerns

Increased fossil fuel burning for power in the world's fifth largest economy drove up CO2 emissions during the year by nearly a sixth, to 1.15 billion tonnes. This is 3.4% of the International Energy Agency's estimate of annual global emissions of 33.8 billion tonnes in 2022. Many major countries boosted coal use in the twelve months due to Russia's invasion of Ukraine, but the rise was steepest in India, data from energy think-tank Ember shows.

Government Response

The government has defended India's high coal use, citing lower per capita emissions than richer nations and rising renewable energy output. After missing a target to install 175 GW in renewable energy capacity by 2022, India is trying to boost non-fossil capacity - solar and wind energy, nuclear and hydropower, and bio-power - to 500 GW by 2030. India's solar capacity additions have risen by about a fifth during the just-ended fiscal year, boosting its renewable energy output by a record 33.3 billion units, or 21.7%, to 187.1 billion units.