India's Power-Sector CO2 Emissions Drop Again In Over 4 Decades: Report
India's carbon dioxide emissions from its power sector declined by 1% year-on-year in the first half of 2025 on strong clean energy additions and lower power demand, data from a research report showed, marking only the second drop in nearly 50 years.
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India installed 25.1 gigawatts (GW) of non-fossil capacity during the first six months of the year.
New Delhi:
Carbon dioxide emissions from India's power sector decreased by 1% year-on-year in the first half of 2025, driven by significant clean energy expansion and reduced electricity demand, according to a research report. This represents only the second decline observed in almost five decades.
The reduction was primarily attributed to unprecedented clean energy capacity additions and unusually mild weather conditions that limited electricity consumption, as detailed in an analysis conducted by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief.
According to the Helsinki-based think tank, 65% of the decline in fossil fuel generation resulted from slower demand growth, while 20% came from accelerated clean energy deployment, and 15% from increased hydropower production.
The research is based on comprehensive monthly data covering fuel consumption, industrial output, and power generation collected from various government ministries and institutes.
During the January-June period, India added 25.1 gigawatts of non-fossil capacity – a remarkable 69% increase from the previous record – with potential to generate approximately 50 terawatt hours (TWh) annually, CREA reported.
Lower temperatures combined with rainfall 42% above normal between March and May reduced air conditioning usage, while hydropower generation increased significantly.
Despite total power generation rising by 9TWh, fossil-fuel generation decreased by 29TWh, according to CREA.
Growth in oil demand also plateaued, contributing to the overall emissions reduction. However, emissions from the steel and cement sectors rose considerably due to increased infrastructure investment by the government.
CREA suggests that India's power-sector emissions could reach their peak before 2030 if clean energy growth maintains momentum and demand stays within projected parameters. Historically, this sector has been responsible for half of India's emissions growth.
The nation aims to add 500 GW of clean energy capacity by 2030.