India’s energy sector in 2025 recorded a major shift, combining slower electricity demand with strong growth in renewables and electric mobility, according to IEA report.
After four consecutive years of more than 6 percent expansion, electricity consumption rose by just 1.4 percent, despite a strong 5.8 percent increase in the first four months. The slowdown was driven by an early and intense monsoon that reduced cooling demand, with cooling degree days falling by around 10 percent compared to 2024, and a sharp drop in June, typically a peak demand month.
Electric mobility accelerated significantly. Total EV sales reached a record 2.3 million units, with electric car sales surging by over 75 percent, reinforcing India’s transition toward low-emission transport, the IEA report said.
Renewables delivered the strongest growth across the energy mix. India’s renewable capacity additions rose by nearly 60 percent, the fastest among major markets, driven by the commissioning of almost 50 GW of solar PV. Wind capacity additions also strengthened, doubling to over 6 GW in 2025.
This expansion contributed to a structural shift in power generation. Coal-fired electricity output declined in India, marking the first time in five decades that both India and China recorded simultaneous declines. Coal’s share in India’s electricity mix dropped to 71 percent in 2025, down from 74 percent in 2024 and 76 percent in 2015. Across emerging markets, renewables accounted for 32 percent of electricity generation, while nuclear energy remained close to 5 percent. In comparison, coal’s share stood at 55 percent in China and 48 percent in Southeast Asia in 2025.
India is also advancing nuclear energy development, with around 5 GW of capacity under construction, part of a global pipeline of 78 GW across 15 countries. China alone accounts for about half of this, with plans to reach 100 GW of installed nuclear capacity by 2030. Environmental performance improved in 2025. India’s emissions declined, supported by favorable monsoon conditions and rapid renewable deployment, highlighting the growing impact of clean energy on the country’s carbon trajectory.
BABURAJAN KIZHAKEDATH
