Why in NEWS
IEA’s Electricity Mid-Year Update 2025 highlights surging global power demand driven by EVs, heatwaves, and data centres, while solar, wind, and nuclear power transform electricity generation.
Key Terms & Concepts
| Term | Explanation |
|---|---|
| IEA | International Energy Agency – global energy watchdog under OECD, promotes energy security and sustainability. |
| Renewables | Energy from natural sources like sunlight, wind, water. |
| Electricity Security | Ensuring uninterrupted power supply via strong grids and backup sources. |
| PM-KUSUM | Scheme to solarize agriculture through solar pumps and panels. |
| Compressed Biogas (CBG) | Clean fuel produced from agricultural, municipal, and animal waste. |
IEA Electricity Report 2025: Global Highlights
| Indicator | Insights |
|---|---|
| Demand Growth | Global electricity demand to grow 3.3% in 2025, 3.7% in 2026. |
| India & China Role | Together to contribute 60% of global demand growth by 2026. India to grow at 4% in 2025, 6.6% in 2026. |
| Rise of Renewables | Solar and wind to meet 90% of new demand. Their share to reach 20% by 2026. |
| Coal Decline | Coal’s share in power generation to fall below 33%—lowest in 100 years. |
| Nuclear Growth | Global nuclear power to hit record high; new reactors in China, India, Japan. |
| Electricity Security | Blackouts in Chile, Spain reveal need for robust infrastructure and energy flexibility. |
| Emissions | Despite extreme weather, global emissions rose only 1.2% in 2024. Renewables and nuclear offset fossil fuel use. |
India’s Electricity Landscape – June 2025
| Source | Capacity (GW) | Share (%) |
|---|---|---|
| Thermal | 242.04 | 49.92% |
| Nuclear | 8.78 | 1.81% |
| Large Hydro | 49.38 | 10.19% |
| Renewables | 184.62 | 38.08% |
| Total | 484.82 | 100% |
Fossil vs Non-Fossil Share
| Category | Capacity (GW) | Share (%) |
|---|---|---|
| Fossil Fuels | 242.04 | 49.92% |
| Non-Fossil Fuels | 242.78 | 50.08% |
| Total | 484.82 | 100% |
Breakdown of Non-Fossil Energy
| Energy Source | % within Non-Fossil |
|---|---|
| Solar Power | 47.06% |
| Wind Power | 21.78% |
| Hydro Power | 20.35% |
| Biopower | 4.92% |
| Nuclear | 3.73% |
| Small Hydro | 2.17% |
Other Key Developments in India
| Area | Highlights |
|---|---|
| LPG Coverage | Rose from 14.5 crore (2014) to 33 crore (2025) |
| Ethanol Blending | Increased from 1.5% (2014) to 20% (2025) |
| Biopower & CBG | Biopower capacity rose to 11.6 GW; 150 CBG projects operational |
| Power Access | Village electrification completed by 2018; 2.8 crore households added |
| Electricity Usage | Per capita consumption rose 45.8% (957 to 1,395 kWh) |
| Power Shortages | Dropped from 4.2% (2013–14) to 0.1% (2024–25) |
Flagship Renewable Energy Schemes
| Scheme | Objective |
|---|---|
| PM-KUSUM | Promote solar pumps and grid-connected solar use in farming |
| PM-Surya Ghar | Free rooftop solar for 1 crore homes |
| Solar Parks | Infrastructure for ultra-mega solar projects |
| PLI for Solar Modules | Boost domestic solar PV manufacturing |
| National Bioenergy Programme | Promote biomass, biogas, and waste-to-energy projects |
| PM JANMAN (Solar) | Electrify tribal homes via off-grid solar |
| Green Hydrogen Mission | Make India a global hub for green hydrogen |
India & IEA: Global Role
| Aspect | Details |
|---|---|
| Membership | Associate Member since 2017 |
| Reports | India contributes data to World Energy Outlook, World Energy Investment Report |
| Invitation | IEA has invited India to become a full member, acknowledging its energy leadership |
In a Nutshell
Memory Code: “S.W.E.N.E.R.G.Y”
Solar Surge
Wind Rise
EV Demand
Nuclear Growth
Emissions Control
Renewable Push
Grid Upgrades
Youth Consumption Boom
Prelims Practice Questions
- Which two countries are projected to contribute 60% of the global electricity demand growth through 2026?
a) India and USA
b) China and USA
c) India and China
d) China and Russia - What is India’s current percentage share of non-fossil energy in total installed electricity capacity (June 2025)?
a) 49.92%
b) 33%
c) 50.08%
d) 38.08% - Which of the following statements about the International Energy Agency (IEA) is correct?
a) India is a full-time member of the IEA
b) IEA was established in 1991
c) IEA is under the UNFCCC
d) IEA was created in response to the 1973–74 oil crisis
Mains Questions
- Despite a sharp rise in power demand, India has balanced sustainability and energy security. Critically analyse with reference to IEA’s 2025 report. (15 marks)
- Discuss the role of India’s flagship renewable schemes in transforming its electricity mix. (10 marks)
Prelims Answers and Explanations
| Qn | Ans | Explanation |
|---|---|---|
| 1 | c | India and China together drive 60% of global demand growth through 2026. |
| 2 | c | Non-fossil capacity is 50.08% of India’s total installed capacity. |
| 3 | d | IEA was founded in 1974 after the oil crisis; India is an Associate Member. |
