India's rapid advances in solar power production have been widely celebrated for showing how fast-developing economies can accelerate the decarbonisation of their energy systems without jeopardising economic growth.
But while the pace of India's solar rollout has been impressive, the advances have come mainly at the expense of natural gas - they have had little impact on the country's use of coal as the primary source of electricity.Indeed, India increased the amount of electricity generated from coal in the opening 10 months of 2022 compared with the same period in 2021, and slashed gas-powered generation by nearly 40%, according to data from Ember.
Record high liquefied natural gas prices were the main reason behind this downturn in gas use, as cost-conscious utilities balked at paying more than twice as much for spot LNG cargoes in 2022 as the 2021 average. This is because while non-emitting solar power adds to overall electricity supplies during the day, India's overall grid requires a steady supply of baseload power at all times, and especially at night. This can be produced effectively by burning fossil fuels.
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