India has emerged as a renewable energy star after boosting solar capacity by a whopping 28% in 2022, rivalling China's growth rate and outpacing European heavyweights which deployed record funding on energy transition efforts last year.
India installed 13.9 gigawatts of new solar capacity in 2022, according to think tank Ember, dwarfing the 7.9 GW capacity growth in Europe's top solar producer, Germany, and establishing India as a top-tier green energy leader.
But even with such rip-roaring green energy momentum, India's utilities still struggled to keep up with the country's voracious energy demand growth, and had to crank coal use to record highs alongside the breakneck growth in renewables.
However a combination of delays in developing gas pipeline networks and regasification terminals for liquefied natural gas imports started to reduce gas availability within India in recent years, forcing utilities to burn growing volumes of coal to meet rising energy demand needs. As global coal prices also scaled a record in 2022, the cost of those imports pushed to new highs too, draining the already-tight budgets of utilities and local governments and reducing the pool of funds available for energy system upgrades.
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