In 2025, power generation reached historic highs, driven by surging electricity demand, rapid expansion of renewable capacities, and strategic policy interventions. The global energy landscape is witnessing a definitive shift—from fossil fuel dominance to a rising clean energy era.
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India’s Power Generation Record-Breaking Output
India’s annual generation in FY 2024–25 hit 1,821 billion units (BU), a 5% year-on-year increase over the 1,734 BU recorded in FY 2023–24—a new all‑time high energyandcleanair.org. Per capita electricity consumption also set a fresh record: 1,538 kWh, rising steadily from 1,395 kWh in FY 2023–24 energy.economictimes.indiatimes.com.
Installed capacity climbed to nearly 475 GW by May 2025, with clean sources (solar, wind, hydro, nuclear) accounting for just under 50% (~235 GW), while the balance (~240 GW) remained fossil‑fuel based .
Peak demand mirrored this rise: from 243 GW in September 2023 to 250 GW in May 2024, and projected to reach 270 GW in summer 2025—with further projections of 335 GW by 2030 energy.economictimes.indiatimes.com.
The Sharp Rise of Renewables
Renewables are spearheading India’s growth story. In FY 2024–25, renewable electricity output climbed to 252 BU—an 11.4% increase energyandcleanair.org+1energy.economictimes.indiatimes.com+1. In Q4 alone, 124.9 BU came from green sources (~24% of output), led by solar’s 33.2 BU and wind’s 23.2 BU energy.economictimes.indiatimes.com.
Installed renewable capacity reached 222.9 GW by February 2025, including:
- Solar: ~102.6 GW
- Wind: ~48.6 GW
- Hydro: ~52 GW
- Nuclear: ~8.2 GW timesofindia.indiatimes.com+15newindianexpress.com+15india-briefing.com+15
Annually, 25 GW of renewable capacity was added in FY 2024–25—a record surge surpassing the 18.6 GW added in FY 2023–24 energyandcleanair.org.
Globally, solar power crossed a historic threshold: becoming the fourth-largest global energy source and accounting for 10% of worldwide generation in April 2025—surpassing nuclear for the first time iea.org+1energy.economictimes.indiatimes.com+1.
Coal: Plateau Amidst Growth
Although coal-fired electricity still dominated India’s generation (~66% of total in Q4 FY 2024–25 energy.economictimes.indiatimes.com), its growth cooled significantly:
- Thermal growth slowed to 2.8% in FY 2024–25 iea.orgenergyandcleanair.org+1iea.org+1.
- Coal-fired power output declined at its fastest pace in May 2025, driven by renewable surges and lower demand timesofindia.indiatimes.com.
Globally, fossil-fuel growth slowed—coal rose just ~1% in 2024 while renewables and nuclear accounted for over 80% of new power generation axios.com+4iea.org+4iea.org+4.
Major Drivers Behind the High
- Economic & Residential Demand
Strong demand across industrial, commercial, and household sectors fueled record peaks and consumption per capita energy.economictimes.indiatimes.com. - Policy and Infrastructure Push
India’s drive for 24×7 power for all, massive investments in transmission (₹9.16 lakh crore by 2032), and capacity targets (500 GW non-fossil by 2030) are rapidly expanding supply timesofindia.indiatimes.com+10india-briefing.com+10en.wikipedia.org+10energy.economictimes.indiatimes.com. - Cost Decline & Scale-Up of Renewables
Huge additions in solar (~30% YoY), wind (~51 GW over decade), and solar parks like Bhadla Solar Park (2,245 MW)—India ranks third globally in renewable generation newindianexpress.com+2iea.org+2timesofindia.indiatimes.com+2en.wikipedia.org . - Seasonal & Complementary Mix
Solar (daytime) and wind (night/monsoon) generate complementary output, boosting utilization .
Implications and Future Outlook
- Cleaner Energy Mix: Renewables and nuclear now meet practically all new demand growth through 2027, with global emissions growth plateauing iea.org.
- Energy Security & Sustainability: India’s power mix is becoming greener; solar’s expanding share may allow coal to decline for the first time since 2020 reuters.com.
- Infrastructure Challenge: To manage peaks, integrate renewables, and meet targets, India and the world must invest in grid modernization, storage, and transmission .
Conclusion
2025 marks a historic milestone in power generation—driven by rising demand, record renewable capacity additions, and a decisive global shift toward cleaner energy. India’s power sector is booming: generation at record highs, per-capita usage surging, and renewables eclipsing fossil fuels for the first time. The challenge ahead lies in sustaining this momentum—through infrastructure upgrades, smart grid deployment, and policy support—to power economies sustainably and securely well into the future.
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