New Delhi: According to the most recent International Energy Agency (IEA) study, India has the third-largest increase in global power generation capacity over the past five years.
Only China and the United States outpaced India's increase in power generation during this time.
According to the report, India had the world's third-largest increase in power generation capacity, following only China and the United States.
The study noted that India's electricity demand is rising rapidly due to various circumstances.
These include an increase in the number of air conditioners and other household appliances, as well as rising demand from enterprises, in addition to the growth of commercial and residential buildings.
To satisfy this increasing demand, electricity production in the nation has increased across all energy sources.
According to the research, one of the key drivers of this growth has been the aggressive push for renewable energy.
According to the study, there was a substantial rise in investments in clean energy, particularly solar photovoltaic (PV) projects. In fact, solar PV alone contributed for more than half of India's overall nonfossil energy investment in the previous five years. In 2024, up to 83% of power sector investment in the country will be allocated to clean energy projects.
India was also the top receiver of development finance institution (DFI) support for clean energy in 2024. The nation received roughly USD 2. 4 billion in project-specific funding to enhance clean energy production.
In terms of foreign investment, India has experienced consistent growth in foreign direct investment (FDI) in the energy sector. In 2023, foreign direct investment (FDI) totaled USD 5 billion, nearly double the amount recorded prior to the COVID-19 pandemic.
This expansion is aided by government regulations that permit 100% foreign direct investment (FDI) in all aspects of electric power generation (aside from nuclear power) and transmission infrastructure.
However, the study noted that foreign portfolio investments in India's energy sector had decreased during the previous two years. This decline is due to a combination of macroeconomic and sector-specific difficulties, though the long-term trend remains positive.
Overall, the IEA report highlighted India's robust performance in electricity production and increasing emphasis on clean energy investment.
