India Becomes the Third Largest Solar Power Producer in the World

India has surpassed Japan to become the third-largest solar power generator in 2023. According to the annual electricity review report by a global energy think tank, Ember, solar generation in 2023 was 17 times higher than in 2015, but coal is still meeting the majority of India’s demand growth. Furthermore, India’s per capita emissions from the power sector are the fourth lowest in the G20, despite high coal reliance. Apart from this, the power share has increased consequently in the  global solar PV market.

India’s journey in solar power generation has been remarkable. The country climbed from the ninth position in 2015 to the third in 2023. The rapid execution of solar power projects in India  was the reason for this significant growth. In 2023, solar energy contributed 5.5% globally, with India generating 5.8% of its electricity from solar energy. 

Find Solar Power Projects and Tenders in IndiaGet Started Now!

Renewable energy generation made up 22% of India’s electricity mix, compared to the global average of 39% and 32% in Asia. In 2023, India generated 78% (1,536 TWh) of its electricity from fossil fuels, which is higher than the global average of 61% and the regional average of 68% in Asia.

Increase in Power Generation

Solar Power Generation Ranking

Wind and solar generation increased by a combined 30 TWh. This met 30% of India’s demand increase. India reported the third largest increase in wind and solar globally, behind China and Brazil. Solar generation alone grew 18 TWh, providing 5.9% of global solar growth in 2023. 

Coal generation saw the largest absolute increase among India’s generation sources. India also saw the second-highest increase in coal generation globally, behind China, and was among four countries with an increase greater than 10 TWh. The 26 TWh deficit in hydropower generation as a result of droughts was the primary factor in India's increase in coal production by 26%.  The share of coal in India’s power generation rose by one percentage point from 2022 to 75% in 2023.

Increase in Power Demand

India’s power demand increased by 5.4% (99 TWh) in 2023 compared to the previous year—more than twice as fast as the global increase (+2.2%). This was in line with the country’s average annual demand growth rate for the last decade (+5.4%). Moreover, to fulfill this energy demand, India is actively executing solar power projects in Rajasthan and Gujarat.

Long term Takeaway 

India's Power generation Mix

India’s solar power generation has been increasing significantly over the last two decades, from just 0.01 TWh in 2000 to 113 TWh in 2023. The power generation in 2023 was 17 times larger than in 2015 (6.6 TWh). 

Solar has more than doubled (+145%, +67 TWh) since 2019. However, coal has accounted for the largest rise since 2000, increasing by nearly four times (+1,090 TWh) from 390 TWh in 2000 to 1,480 TWh in 2023.

As a result, India’s power sector emissions have also more than tripled since 2000. However, India's power sector emissions in 2023 would have been 13% higher if wind and solar generation had not increased over the previous two decades and coal had met this demand.  

Read: Global Solar PV Market Review 2023

Connect with Decision-makers about the Latest Solar Power Projects in India for business Opportunities.

Subscribe to our database on  Solar Power Projects and Tenders in India to get access to reliable and high-quality insights on upcoming, in-progress, and completed Solar Projects across the world or in your desired geographical location.

Our user-friendly platform provides essential details, timely updates, key stakeholder contact information, and business opportunities tailored for engineering companies, industry professionals, investors, and government agencies.

Start a free demo to take your business to the next level!