India’s Electricity Emissions Fall 1% in 2025, Experts Warn Lasting Cuts Need Batteries, Smarter Use of Power

India’s carbon dioxide emissions from its power sector fell by 1% year-on-year in the first half of 2025, marking only the second decline in nearly 50 years.

The drop was primarily attributed to the record growth in clean-energy capacity and unusually mild temperatures and high rainfall, which reduced electricity demand, according to an analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief. It also stated slowdown in industrial sectors in the second quarter of the year as another contributing factor.

The Helsinki, Finland-based think tank attributed 65% of the fall in fossil generation to lower electricity demand growth, 20% to faster clean-energy expansion, and remaining 15% to higher output at existing hydropower plants.

India added 25.1 gigawatts (GW) of non-fossil capacity in the January-June period – a 69% jump from the previous record – enough to generate nearly 50 terawatt hours (TWh) annually, CREA said.

Lower temperatures and rainfall between March and May that was 42% above normal reduced air conditioning use, while hydropower output surged.

The report stated that the first half of 2025 saw an increase in total power generation by 9 terawatt hours (TWh) year-on-year, but fossil-fuel generation fell by 29TWh as output from solar grew 17TWh, from wind 9TWh, from hydropower by 9TWh and from nuclear by 3TWh.

Oil demand growth also stalled, contributing to the broader emissions slowdown. However, emissions from steel and cement rose sharply due to increased government infrastructure spending.

India’s power-sector emissions could peak before 2030 if clean-energy growth continues and demand remains within projections, CREA said. The power sector has accounted for half of India’s emissions growth.

The analysis is based on official monthly data for fuel consumption, industrial production and power compiled from different ministries and government institutes.

Storage, Efficiency Key Ahead

According to a 2023 report by The Energy and Resources Institute, in order to guarantee that emissions reductions last past transient weather effects, battery storage, pumped hydro and more intelligent demand-side management must scale quickly.

The report further stated that India is expected to witness a four-fold increase in electricity demand by 2050, demanding new investments of $1.2 to 1.6 trillion. Large-scale energy storage, effective generating technologies and developing transmission infrastructure are essential factors for facilitating the integration of renewable energy sources across states.