Clean energy keeps India’s power-sector emissions flat over two years: CREA

New Delhi: India’s power-sector emissions remained flat between the first half of 2024 and the corresponding period in 2026 as rising clean-energy generation met the increase in electricity demand, according to a new analysis by the Centre for Research on Energy and Clean Air (CREA).

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Released on Thursday, the analysis said this was the first time in more than 50 years that coal-fired generation had not expanded over a two-year period despite growth in overall electricity demand.

India’s total emissions, however, rose 3.7 percent year-on-year in the first half of 2026, driven by increases in steel, cement and other sectors.

Clean energy meets additional power demand

The analysis, by CREA’s Lauri Myllyvirta and Anubha Aggarwal, said clean energy met the entire 7 percent increase in electricity demand—equivalent to 63 terawatt-hours (TWh)—over the two years.

India recorded its largest-ever increase in non-fossil electricity generation during the period. Solar generation rose by 44 TWh, while wind added 13 TWh, nuclear 7 TWh and hydropower 8 TWh.

The findings point to clean energy’s growing ability to meet additional demand without a corresponding increase in coal-fired generation.

Grid and storage upgrades remain critical

Sustaining that momentum will require electricity grid upgrades, rapid expansion of energy storage and greater flexibility in coal-fired power plant operations, CREA said.

The analysis also flagged continued investment in fossil fuels, including new coal-fired capacity, coal-to-chemicals projects and plans to increase domestic coking coal production for steelmaking.

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Steel and cement drive emissions growth

Emissions from steel and cement increased 8 percent year-on-year in the first half of 2026, accounting for 23 percent of India’s total carbon dioxide emissions, according to CREA.

Growth in the two sectors was supported partly by increased real-estate investment, particularly in the second quarter.

Despite higher activity, manufacturers’ profit margins remained under pressure from elevated raw material costs, especially imported coking coal, and higher freight costs linked to the Hormuz crisis, the analysis said.

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