India Ranks Third Globally in Power Generation Growth Over Last 5 Years: IEA

• India recorded the 3rd-highest growth in power generation globally, after China and the US
• 83% of power sector investment in 2024 went to clean energy, led by solar PV
• India topped global DFI clean energy funding with $2.4B in 2024; FDI hit $5B in 2023

A report released by International Energy Agency (IEA) in recent times has reported that in the last five years, India has achieved the fastest increase in generation capacity of power in the world. This is evident in the rapid rise in electricity generation in India that is preceded only by China and the United States, thus indicating the strategic interest of the country in energy security and sustainability.

“India has seen the third-largest growth in power generation capacity in the world after China and the United States,” the report stated.

India has been increasing its energy supply in all directions to the extent that it currently has flared its energy portfolio and laid strong focus on clean power. The fields of solar photovoltaic (PV) have been instrumental and have increased to over 50 per cent of the total non-fossil investment in the country in the past five years. The share of investments that went into clean energy was astonishing, as the increase was at a percentage of 83 in 2024 alone.

India ranked highest in the world regarding development finance institution (DFI) investments in clean energy with USD 2.4 billion to be invested in 2024. Also, the foreign direct investment (FDI) in the power sector achieved the high mark of USD 5 billion in 2023 (almost twice that of the levels before the pandemic) due to progressive policies of 100 percent FDI in non-nuclear electricity sectors.

Although foreign portfolio investment has fallen in recent times, affected by the macroeconomic headwinds, India will still be transitioned as a leader in sustainable energy in the long run.