Coal's share of India's overall installed capacity dips below 50% in FY24: CEEW
- In Reports
- 08:12 PM, May 02, 2024
- Myind Staff
According to the Council on Energy, Environment, and Water (CEEW), India's coal share in the total installed capacity dropped below 50% for the first time in FY 24. Additionally, the fiscal year saw the addition of nuclear capacity (1.4 GW), marking the first such addition since 2017.
As per the latest edition of the CEEW Centre for Energy Finance (CEEW-CEF) Market Handbook, renewable energy (RE) sources contributed to 71% of the 26GW of power generation capacity added in India during FY 2023-2024.
The handbook revealed that India's total installed energy capacity has now reached 442 GW, with renewable energy sources accounting for 144 GW (33%) and hydro contributing 47 GW (11%).
Consequently, the coal/lignite share in India’s total installed capacity fell below the 50% mark for the first time. Moreover, the CEEW-CEF Market Handbook highlighted that solar—both grid-scale and rooftop—continued to dominate India’s RE capacity addition, representing 15 GW (or 81% of RE addition) in FY24.
Additionally, wind capacity addition nearly doubled, reaching 3.3 GW compared to 2.3 GW in FY23.
According to the CEEW-CEF Market Handbook, nuclear capacity of 1.4 GW was added in FY24 for the first time since FY17. The report also highlights a record-breaking year for renewable energy (RE) auctions, with 41 GW of auctioned capacity in FY24.
Additionally, eight auctions with energy storage components were concluded during this financial year, indicating a growing shift towards innovative power procurement formats. The handbook further reveals that 95% of India's targeted 50 GW annual RE bidding trajectory was met in FY24, with bids of 47.5 GW issued, approximately three times the RE capacity added annually in recent years.
Innovative formats such as wind-solar hybrids, firm and dispatchable renewable energy (FDRE), and RE-plus-storage accounted for 37% of the capacity auctioned. Gagan Sidhu, Director of CEEW-CEF, stated that there is a clear trend away from pure vanilla RE procurement, with innovative formats representing 57% of bids issued, suggesting a further increase in their share in the future.
In August 2022, India updated its climate change commitments, aiming to reduce emissions intensity by 45% by 2030 and increase non-fossil fuel-based power capacity. Peak power demand reached 240 GW in FY24, driven by economic growth and adverse weather conditions, resulting in an 8% increase in electricity demand compared to FY23.
Image source: Hindustan Times
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