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Key Points

India has become the world’s third-fastest-growing power generator, trailing only the US and China. Rising demand comes from industries, homes, and increasing appliance ownership. Solar energy dominates clean energy investments, making up over half of non-fossil fuel spending. The country also leads in clean energy funding, attracting $2.4B in development finance last year.

Key Points: India Ranks Third in Global Power Generation Growth After US China

  • India's power demand surged due to industrial growth and appliance usage
  • Solar PV led clean energy investments with 83% sector focus
  • FDI in power doubled to $5B post-pandemic policies
  • DFI funding for renewables hit $2.4B in 2024
2 min read

India records highest growth in power generation after US & China in last five years: IEA

India records third-highest power capacity growth globally, driven by renewables and rising electricity demand, per IEA report.

"India has seen the third-largest growth in power generation capacity after China and the US – IEA"

New Delhi, June 19

India has emerged as a country with the third-largest growth in power generation capacity globally over the past five years, according to the latest report by the International Energy Agency (IEA).

Only China and the United States surpassed India in power generation growth during this period.

It said "India has seen the third-largest growth in power generation capacity in the world after China and the United States".

The report highlighted that India's electricity demand has been rising sharply due to several factors. These include the expansion of commercial and residential spaces, increased ownership of air conditioners and other household appliances, and growing demand from industries.

To meet this growing demand, power generation in the country has expanded across all energy sources.

The report mentioned that a major driver of this expansion has been the strong push towards renewable energy.

The report noted a significant increase in investments in clean energy, especially solar photovoltaic (PV) projects. In fact, solar PV alone accounted for more than half of the total non-fossil energy investment in India over the past five years. In 2024, as much as 83 per cent of power sector investment in the country went into clean energy initiatives.

India was also the largest recipient of development finance institution (DFI) funding for clean energy in 2024. The country received around USD 2.4 billion in project-specific funding aimed at boosting clean energy generation.

In terms of foreign investment, India has seen a steady rise in foreign direct investment (FDI) in the power sector. FDI reached USD 5 billion in 2023, nearly twice the level seen before the COVID-19 pandemic.

This growth is partly driven by government policies that allow 100 per cent FDI in all areas of electricity generation (except nuclear power) and transmission infrastructure.

However, the report also pointed out that foreign portfolio investment in India's energy sector has seen a decline in the past two years. This drop is attributed to a mix of macroeconomic and sector-specific challenges, though the long-term trend remains positive.

Overall, the IEA report outlined India's strong performance in power generation and its growing focus on clean energy investment.

- ANI

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Reader Comments

R
Rajesh K.
This is fantastic news! India's progress in power generation shows our commitment to development while balancing environmental concerns. The solar energy push is particularly impressive 🌞. Hope we can maintain this momentum and become energy independent soon!
P
Priya M.
Great achievement, but I hope this translates to fewer power cuts in rural areas. My village still faces 8-10 hour outages daily. The report mentions growth, but we need equitable distribution across all regions.
A
Amit S.
The solar power numbers are encouraging! India has so much sunshine - we should be world leaders in solar energy. Just hope the government continues the subsidies and makes rooftop solar more affordable for middle-class families.
S
Sanjana R.
While the growth is impressive, we must not ignore the coal power plants that still dominate our energy mix. Clean energy investment is good, but the transition needs to be faster to meet our climate commitments.
V
Vikram J.
$5 billion FDI in power sector! This shows global confidence in India's growth story. With proper implementation, we can become energy surplus nation in next decade. Make in India + Power for India = Winning combination!
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Neha P.
The report mentions increased AC ownership driving demand... but what about sustainable cooling solutions? We can't keep adding ACs indefinitely. Need more focus on green buildings and passive cooling techniques too.

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