Power sector emissions fall 1 per cent in H1 2025 as renewable additions and mild weather curb fossil fuel use

India’s carbon dioxide emissions from the power sector declined by 1 per cent year-on-year in the first half of 2025, driven by record clean energy additions and weaker electricity demand, according to a report by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief.

The fall marks only the second drop in nearly 50 years, CRAE noted. Around 65 per cent of the reduction in fossil fuel generation was attributed to slower demand growth, 20 per cent to rapid expansion in renewables, and 15 per cent to higher hydropower output.

India added 25.1 gigawatts of non-fossil capacity in the January–June period, a 69 per cent increase on the previous record, sufficient to generate nearly 50 terawatt hours annually. Mild weather, with rainfall 42 per cent above normal between March and May, reduced air conditioning demand, while hydropower output surged, further curbing fossil-fuel generation by 29 TWh even as total power generation rose by 9 TWh.

CREA noted that oil demand growth stalled, reinforcing the broader slowdown in emissions. However, emissions from steel and cement increased due to accelerated government infrastructure spending.

The think tank suggested that India’s power-sector emissions could peak before 2030 if clean-energy growth continues and demand remains within projections. The sector has historically accounted for roughly half of the country’s emissions growth, with India targeting 500 GW of clean energy capacity by 2030.