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Data shows that India's power output growth in 2024 is the slowest since pandemic.

An analysis of data from the federal grid regulator showed that India's electricity production grew at the slowest rate since the COVID-19 epidemic in 2024. This was due to a slowdown within the fastest-growing major economy in the world.

Grid-India, the federal grid regulator, showed that an analysis of daily data on load dispatch revealed a 5.8% annual increase in power output to 1,824.13 kilowatt hours (kWh).

The data revealed that the growth in power generation in the second half of the year averaged 2,3%, almost a quarter the 9.6% increase in the first half.

The slowdown in electricity generation coincided with the economy's softening, which grew slower than it had in almost two years in the third quarter ending on September 30.

India's manufacturing growth in December was at its lowest pace of the year due to weaker demand.

Analysts expect that adverse weather will lead to an increase of 6 to 7 percent in 2025 in the use of electricity.

Sooraj Narayan is the head of Asia-Pacific Power Modelling at Wood Mackenzie. He said that demand has increased in December due to mercury levels falling and an increase in heating systems.

We expect that the rate of demand growth in 2025 will be higher due to increased industrial production.

The world's third largest emitter of greenhouse gases, China, has ended a three-year streak in which coal had been increasing its share.

In 2024, the share of polluting fuels in India's electricity mix will drop to 74.4% from 75%.

The year saw a tepid increase in the renewables industry, with a growth rate of 18,4% for the total solar output. This was the slowest growth since India took international commitments in 2015 to combat climate change. The data revealed that the annual wind power production fell for the very first time since 2020.

In 2024, India's hydropower output, the second largest electricity source behind coal, increased by 4%, after a drop of 13.7% in 2013. However, its share in overall production fell to 8.6%.

Analysts expect coal and renewables will grow in 2025 at the expense natural gas, which grew 17.3% last year.

Kesher sumeet is a senior LNG analyst with Energy Aspects. "We expect gas to be a smaller part of the mix of energy sources this year, due to our forecasted higher gas prices year-over year," he said. (Reporting and editing by Florence Tan, Clarence Fernandez and Sudarshan Ng)

(source: Reuters)