GS 3: Environment & EcologyGS 3: Economy

Share of clean energy in electricity still below 30%, Pg12

Despite achieving 50% of installed electricity capacity from non-fossil fuel sources, the actual share of clean energy in electricity generated in India remains below 30%, due to low capacity utilisation factors (CUF) of renewables like solar and wind.

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Key Highlights:

  • As of June 2025, 50% of India's total installed power capacity (484 GW) is from non-fossil fuel sources.
  • However, clean energy accounted for only 28% of electricity actually generated in 2024–25.
  • Solar CUF is ~20%, wind ~25–30%, compared to coal (~60%) and nuclear (~80%).
  • Coal still provides 75% of India's base load demand, especially in evening hours.
  • Experts highlight need for grid flexibility, smart grids, and differential pricing to improve clean energy usage.
  • Hybrid projects integrating solar, wind, hydro, and battery storage are proposed to address demand-supply mismatches.

Detailed Insights:

  • The gap between installed capacity and actual generation highlights the challenge of intermittency in renewables.
  • Low CUF in solar and wind means that despite large capacity, usable output remains limited.
  • Coal power remains critical due to its consistent base load generation, especially in evenings when solar fails.
  • India needs time-of-use pricing, where power rates vary by time of day, to incentivise demand-side management.
  • Battery storage and hybrid projects can help store excess renewable energy and release it during peak hours.
  • A smart grid is essential to integrate intermittent energy sources and ensure grid stability.
  • The clean energy target is aligned with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement.

Scientific/Technical Concepts Involved:

  • Capacity Utilisation Factor (CUF): Ratio of actual output over a period to potential output if the plant operated at full capacity.
  • Base Load Power: Minimum level of demand on an electrical grid over a span of time, typically supplied by coal or nuclear.
  • Hybrid Energy Projects: Integration of different renewable sources with storage solutions to ensure stable power supply.
  • Smart Grid: An electricity network that uses digital technology to monitor and manage energy flow efficiently.
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