Delhi's Renewable Energy Output Declines as Power Consumption Surges
New Delhi: The generation of renewable energy in Delhi witnessed a notable decline during the last financial year, even as the overall electricity demand in the capital continued its upward trajectory. This divergence underscores the mounting challenge of fulfilling the city's escalating power requirements through indigenous clean energy sources, according to official data.
Significant Drop in Renewable Generation
The data indicates a substantial fall in renewable energy production, which decreased to approximately 1,288 million units in the 2024-25 financial year from nearly 1,518 million units in 2023-24. This decline occurred concurrently with a significant rise in the city's total electricity consumption, propelled by increased usage in both domestic and commercial sectors.
Geographical and Structural Constraints
Senior officials have contextualized this downturn, pointing to Delhi's inherent geographical limitations. "Delhi possesses very restricted space for establishing large-scale renewable projects," an official explained. "Renewable energy generation is predominantly confined to rooftop solar installations and waste-to-energy plants, both of which face natural capacity constraints." Additional factors such as weather-related variations and operational issues were also cited as contributors to these year-on-year fluctuations.
Surge in Domestic and Commercial Demand
The domestic electricity sector recorded the most pronounced increase in demand during 2024-25. This surge is attributed to:
- Rising household demand linked to ongoing urbanization
- Increased usage of electrical appliances
- Enhanced cooling requirements due to an extended summer season
Commercial consumption also exhibited robust growth, aligning with expanding economic activities and the consequent rising demand from offices, retail establishments, shopping malls, and the broader service sector.
Stable Industrial Consumption and Structural Shifts
In contrast, industrial electricity consumption remained relatively stable, suggesting that manufacturing activity did not expand at a comparable pace. Officials noted that industrial consumption patterns reflected stability rather than decline in key distribution areas during 2024-25. In regions such as south, west, east, and central Delhi, the number of industrial consumers remained broadly stable, with electricity sales showing steady growth. This indicates higher average consumption by existing industrial units rather than an increase in the number of factories.
However, officials acknowledged that industrial electricity usage has exhibited a stagnant or gradually declining trend over recent years. They attributed this to several structural factors:
- Relocation of industrial units to other parts of the National Capital Region due to space constraints
- Implementation of stricter environmental regulations
- Cost considerations and the adoption of energy-efficient technologies
Reliance on External Power Sources
Given that both renewable and conventional generation capacities cannot be scaled up proportionately within the city, Delhi continues to depend heavily on power sourced from the central sector and interstate generating stations. Officials emphasized that this reliance constitutes a planned procurement strategy rather than a short-term measure. "Delhi continues to meet its renewable purchase obligations through a combination of local generation, long-term renewable power procurement from external sources, and renewable energy certificates, in accordance with national policy and regulatory frameworks," the official stated.
Future Clean Energy Initiatives
Distribution companies, particularly BSES, are progressively enhancing their clean energy footprint. Strategic plans are in place to source more than half of the long-term power requirements from clean energy by 2026-27, with this share anticipated to rise to nearly 60% by 2029-30. Parallel efforts are underway to expand decentralized solar generation across the city.
Structural Shift in Consumption Patterns
Collectively, the data points to a structural transformation in Delhi's electricity consumption landscape. Growth is now primarily driven by households and the service sector, which form the backbone of the city's economy. As demand continues to escalate, officials highlighted that accelerating rooftop solar deployment, strengthening interstate renewable procurement mechanisms, and improving grid integration will be critical to ensuring a reliable and sustainable power supply for Delhi in the forthcoming years.
