Scaling up green energy production helps India reduce dependence on coal

Record green energy output reduced Indian dependence on coal in May, despite 23.5% growth in power demand, contributing to a rise in utilities’ coal inventories.

According to government data released recently the share of renewable energy sources in power output rose to 14.1% in May from 10.2% in April. Coal made room for it, dropping to 72.4% of Indian generation from 76.8%. However, coal’s share was still higher than 70.9% in May 2021.

Wind energy generation was 51.1% higher in May than a year before, while solar power output increased 37.8%. Generation from all renewable sources rose 44.1% from a year before, the fastest pace in at least 30 months.

Power shortages, driven entirely by demand and not declines in supply, narrowed to 0.4% of requirements in May. This compared with 1.8% in April, an analysis of daily load despatch data from federal grid regulator POSOCO showed.

Utilities’ coal inventories at the end of April were at their lowest levels in years, but they rose 6.3% in May to 23.3 million tonnes, helped by renewables stepping up to carry more of the national electricity load.

Demand in the financial year to March 2023 is expected to grow at the fastest pace in at least 38 years.