India Electrifies at a Faster Pace Than China, Signalling a New Clean Energy Growth Model

India’s energy transition is unfolding at a pace and scale that is reshaping traditional development narratives. A recent international report highlights that India is electrifying its economy faster than China did at a comparable stage of development—while relying significantly less on fossil fuels per capita. This shift reflects how technological advances, policy direction, and global cost reductions in renewables are enabling a cleaner pathway to growth.

With the US and Europe increasingly restricting Chinese-linked clean-energy technologies, countries such as India now have stronger incentives to invest in local manufacturing. | News18

A Break from the Fossil-Fuel-Heavy Development Model

Historically, rapid industrialisation in emerging economies was closely tied to coal and oil consumption. China’s own growth in the early 2000s followed this trajectory, with coal forming the backbone of its power expansion. India, however, is charting a different course. The country is expanding electricity access and meeting rising demand while integrating renewable energy much earlier in its development cycle.

According to the analysis, India is adding electricity capacity with far lower fossil fuel use per person than China did at a similar income level. This divergence marks a significant shift in how large developing economies can grow without locking themselves into high-carbon systems.

Solar Power and Clean Technologies Drive Electrification

Solar energy has emerged as the central pillar of India’s clean electrification push. The country reached a solar share of around nine percent in its electricity mix earlier in its development than China achieved, underscoring the speed of adoption. Falling global prices for solar modules, combined with competitive domestic auctions, have made solar one of the cheapest sources of new power in India.

Battery storage, grid-scale renewables, and improvements in transmission infrastructure are further supporting this transition. Together, these technologies are allowing India to electrify homes, transport, and industry without proportionately increasing emissions.

Record Renewable Capacity Additions Strengthen Momentum

India’s renewable energy expansion has accelerated sharply in recent years. In 2025 alone, the country added over forty gigawatts of renewable capacity, led primarily by solar power and supported by strong wind installations. This surge has pushed non-fossil fuel sources to more than half of India’s installed power capacity.

Government initiatives, including large-scale solar parks, rooftop solar programmes, and rural electrification schemes, have played a critical role in sustaining this growth. The pace of capacity addition places India among the fastest-growing clean energy markets globally.

Rising Electricity Demand Meets a Cleaner Grid

India’s electrification drive is taking place against the backdrop of rapidly rising electricity demand. Economic expansion, urbanisation, increased use of air conditioning, growth in data centres, and the emergence of electric mobility are all contributing to sustained demand growth.

International energy agencies project that India’s electricity consumption will grow by around six percent annually over the coming years—one of the fastest rates globally. Unlike previous growth phases, much of this demand is now being met by renewable energy rather than coal alone, reducing the emissions intensity of economic growth.

Universal Access and Grid Modernisation

India has achieved near-universal household electrification, a milestone that has transformed rural and semi-urban livelihoods. Attention has now shifted toward improving reliability, reducing distribution losses, and modernising grids to accommodate renewable energy at scale.

Support from multilateral institutions and ongoing reforms in the power distribution sector aim to strengthen financial sustainability and digitalisation, ensuring that clean electrification remains both reliable and affordable.

How India’s Path Differs from China’s

China remains a global leader in renewable energy capacity and clean technology manufacturing. However, its early growth relied heavily on coal, leading to higher emissions during its rapid industrialisation phase. India’s advantage lies in timing. The availability of mature, cost-effective clean technologies today allows India to leapfrog older energy models.

While China is now aggressively expanding renewables and reducing fossil-fuel dependence, India’s experience demonstrates how emerging economies can adopt clean energy as a foundation rather than a correction.

The MGMM Outlook

India’s electrification trajectory is redefining how large developing economies can grow in the clean energy era. Unlike earlier industrialisation models that depended heavily on coal and oil, India is expanding electricity access and meeting rising demand with significantly lower fossil fuel use per capita. Rapid integration of renewables—especially solar—at an early stage of development highlights a structural shift enabled by falling technology costs, policy clarity, and global supply chains. This approach demonstrates that electrification and economic expansion no longer need to be tightly coupled with high emissions.

The scale and speed of renewable capacity additions reinforce this transition. Record solar and wind installations, alongside improvements in grid infrastructure and storage, are allowing India to absorb rising electricity demand from urbanisation, industry, and emerging sectors such as electric mobility. Near-universal electrification, combined with ongoing grid modernisation, positions India to sustain growth while steadily lowering emissions intensity. The contrast with older fossil-heavy pathways underscores how timing and technology have created an opportunity for India to build a cleaner, more resilient energy foundation from the outset.

(Sources: News18, Firstpost, Times of India)