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India Sees 1 per cent Drop in Power Sector CO₂ Emissions

2025-09-23

India’s carbon dioxide emissions from the power sector fell by 1 per cent year-on-year in the first half of 2025, marking only the second decline in nearly 50 years, according to a research report. The reduction was largely driven by record clean-energy capacity additions and lower electricity demand due to unusually mild weather, the analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief found.

The Helsinki-based think tank attributed 65 per cent of the decline in fossil-fuel generation to slower demand growth, 20 per cent to faster expansion of clean energy, and 15 per cent to higher hydropower output. CREA’s analysis used official monthly data on fuel consumption, industrial production, and power generation from various ministries and government agencies.

India added 25.1 GW of non-fossil capacity between January and June, a 69 per cent increase over the previous record, sufficient to generate nearly 50 terawatt hours (TWh) annually. Lower temperatures and rainfall 42 per cent above normal between March and May reduced air-conditioning demand, while hydropower output surged.

Fossil-fuel generation dropped by 29 TWh even as total power generation rose by 9 TWh, CREA noted. Oil demand growth also stalled, contributing to the overall slowdown in emissions. However, emissions from steel and cement sectors rose sharply due to increased government infrastructure spending.

If clean-energy growth continues and power demand remains within projections, India’s power-sector emissions could peak before 2030, CREA said. The sector has historically accounted for half of India’s total emissions growth, and the country is targeting 500 GW of clean energy capacity by 2030.

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