India must charge up non-fossil fuel energy capacity to 600 GW by 2030 to avoid dimming lights: Report
India must increase its non-fossil fuel energy capacity to 600 GW by 2030 to meet rising electricity demand. Achieving this will prevent unmet demand and reduce reliance on coal. This pathway will also reduce costs, create jobs, and lower carbon emissions. The report highlights the need for renewable energy to meet India’s demand sustainably.
The report notes that if India reaches only 400 GW of non-fossil capacity, around 0.26% of demand will remain unmet, necessitating an additional 10 GW of coal capacity and substantial transmission upgrades.
Even with 500 GW, power shortages will still occur, with 0.32% of demand unmet, requiring further coal-based capacity additions.
"If demand grows faster (at a CAGR of 6.4% instead of 5.8% between 2023 and 2030), existing and planned capacities will be inadequate," it read.
A high renewable energy (RE) pathway of 600 GW is the most cost-effective solution, as it can lower power supply costs by 6-18 paise per unit, saving Rs 13,000 - Rs 42,400 crore by 2030.
This pathway would also generate significant social and environmental benefits, including 53,000-100,000 more jobs and a 13-23% reduction in carbon dioxide and air pollutants.
Live Events The New Delhi-based think tank's report further underscores the necessity of scaling up renewable energy to meet India’s energy demands sustainably.
Power demand soars, generation slows India's electricity demand has been growing rapidly, driven in part by an unusually warm February this year that pushed peak power demand to 238 GW during solar hours, surpassing the projected 234 GW. This was a significant increase from last February's peak demand of around 222 GW. The peak demand in February 2025 was recorded on the 6th and exceeded 234 GW consistently after February 11. Electricity consumption for the month also rose by 6% year-on-year, reaching 79.3 billion units.
With consumption continuing to grow, peak power demand during solar hours is expected to touch 240 GW in March, with non-solar hours reaching 223.1 GW, according to government estimates.
However, while demand surges, electricity generation has been growing at its slowest pace since the COVID-19 pandemic.
Power output increased by just 5.8% annually in 2024, totaling 1,824.13 billion kWh, Reuters reported citing data from the federal grid regulator, Grid-India.
The slowdown in power generation reflects the broader softening economy, which grew at its slowest rate in nearly two years during the second quarter of 2024.
The slower pace of power generation, particularly in the latter half of the year, highlights the challenge of meeting the growing electricity demand in the face of a decelerating economy.
