India’s rising renewable energy capacity delivered massive economic and environmental gains in 2024. The world’s third-largest energy consumer saved more than $46 billion (approximately ₹4 lakh crore) in fossil fuel and pollution-related costs, according to the latest report by the International Renewable Energy Agency (IRENA).
IRENA Highlights India’s Low-Cost Renewables
IRENA’s analysis compared India’s actual renewable generation in 2024 with a scenario where the same electricity would have been produced using coal- and gas-fired plants. The findings revealed that India avoided $14.9 billion in fossil fuel costs, prevented 410.9 million tons of CO₂ emissions, and realized $31.7 billion in air pollution-related health benefits. The report also noted that India’s levelised cost of electricity (LCOE) ranks as the second cheapest in the world, after China, underscoring the country’s growing competitiveness in renewable energy deployment.
Global Impact of Renewable Expansion
Globally, renewable capacity in operation saved $467 billion in avoided fossil fuel costs in 2024. The addition of 585 gigawatts (GW) of new renewable capacity alone offset $57 billion worth of fossil fuel consumption. This amount is equivalent to the entire GDP of nations such as Armenia or Mongolia.
Declining Renewable Costs Strengthen Competitiveness
From 2022 to 2024, renewable energy costs continued to fall worldwide, though regional differences persisted. In China, solar photovoltaic (PV) costs dropped to $0.033 per kilowatt-hour (kWh). In India, they reached $0.038 per kWh—among the lowest globally.
A Decade of Cost Reductions
Between 2010 and 2024, the global weighted average LCOE of utility-scale solar PV plants plummeted by 90%, from $0.417 per kWh to $0.043. While the 2024 value rose slightly by 0.6% year-on-year, the long-term decline highlights structural improvements in financing, manufacturing efficiency, and technology. The global average installed cost of projects commissioned in 2024 dropped to $691 per kilowatt, marking an 87% reduction since 2010 and an 11% decline from 2023.
Drivers of Solar PV Competitiveness
IRENA attributes the sustained cost decline to multiple factors:
*Advancements in manufacturing equipment efficiency
*Production optimization through lean processes
*Better material utilization
*Standardization of module sizes
*Ongoing design innovation
As reported by thehindubusinessline.com, these improvements continue to reinforce solar PV’s position as the most competitive renewable technology. In 2024, it recorded the highest learning rate at 33.8%.
