"The Truth Behind India as the 'Third Major Power': Ranked 3rd in Global Power Generation Growth Rate"

1. Introduction: The Current Position of India as Reflected in the IEA Report

The "World Energy Investment 2025" report, published by the International Energy Agency (IEA) on June 6, indicates that the total global energy investment is expected to reach a record high of $3.3 trillion. Of this, clean energy-related investments account for $2.2 trillion, double that of fossil fuels. India garnered the most attention in the report. Over the past five years, its increase in power generation ranks third in the world, following the United States and China. Moreover, by 2024, 83% of its power sector investments will be directed towards clean energy sources such as solar and wind, with funding from development finance institutions (DFIs) amounting to 2.4 billion USD, making it the highest in the world.iea.orgenergy.economictimes.indiatimes.com

2. Drivers of the Investment Boom

• Policy Support

  • Policy allowing 100% foreign investment in power generation and transmission infrastructure (excluding nuclear)

  • Promotion of manufacturing through PLI schemes and rooftop solar proliferation measures under "PM Surya Ghar Muft Bijli Yojana"

• Improvement in Cost Competitiveness

  • PV levelized cost falls below coal due to the decline in prices of Chinese-made modules

• Huge Demand

  • IEA estimates an annual 8% increase in power demand due to GDP growth over 7% per year, rapid increase in air conditioning penetration, and new AI and data centersiea.org

3. Trends by Technology

4. Challenges: Investment Barriers

1. Delays in Power Grid—60 GW of renewable energy is stalled due to insufficient transmission capacity.

2. Unpaid debts of power distribution companies—As of March 2025, debts amount to 9 billion USD, with delayed interest payments driving up investment costs.

3. Capital costs—WACC remains a bottleneck, being 80% higher compared to developed countries.renewablewatch.in

5. Reactions on Social Media

• Proponents

  • "Towards the fastest renewable energy market in the world" (Staten Solar's LinkedIn post)linkedin.com

  • "Renewable energy expansion is outpacing government targets" (Post by CEO of an Indian renewable energy startup)

• Concerns

  • Energy researcher: "Coal still accounts for two-thirds of power. Transmission grid investment must double to meet targets" (citing Times of India article)timesofindia.indiatimes.com

  • Citizen group points out on X that "consideration for land acquisition and environmental impact is being neglected" (screenshot of the post)

• Neutral

  • The official IEA account shares facts plainly, stating "the largest investment destination in developing countries."

6. Excerpts from Expert Interviews

N. Venu, CEO of Hitachi Energy South Asia
"HVDC and storage technologies are key to renewable energy integration. The Indian market will become a testing ground for technology implementation."economictimes.indiatimes.com

7. Global Comparison

Globally, investment in clean power has doubled compared to 2015, while fossil fuels remain flat. The IEA calls for an increase to 4.5 trillion USD annually by 2030. While India's progress is welcomed, it is noted that an additional 20% acceleration in investment is needed to achieve net-zero.weforum.orgenergytracker.asia

8. Future Scenarios

• Optimistic Case: Achieving an annual renewable energy introduction of 62 GW, advancing the 2030 target of 500 GW.

• Status Quo: Financial and transmission constraints remain unresolved, limiting to 450 GW, with a 50% coal ratio remaining.

• Policy Regression: Reduction in subsidies slows investment, distancing the net-zero 2070 goal.

9. Conclusion

The IEA report positions India as a "litmus test for clean energy investment." While social media reflects a mix of excitement and caution, the undeniable fact is that the "age of sun and wind" is reshaping India's power map.