An Econometric Analysis of Electricity Consumption from Renewable Energy in India


  • Ajay Kumar Gautam Ph.D Scholar, Babasaheb Bhimrao Ambedkar University, Lucknow, India
  • N. M. P Verma Professor, Department of Economics, Babasaheb Bhimrao Ambedkar University, Lucknow, India
  • Naveen Linda Ph.D Scholar, Babasaheb Bhimrao Ambedkar University, Lucknow, India



consumption, enewable energy, electricity, compound annual growth rate


In the wake of the oil crises of the 1970s, the world found itself at the crossroads, confronted by the vulnerability and volatility of over dependence on fossil fuels. These transformative events ignited a paradigm shift towards renewable energy sources, with solar energy emerging as a beacon of hope. Solar energy offered a viable means for achieving the elemental goal of greener, sustainable as well as economical and efficient energy resource for driving industrial growth. It provided an opportunity to reduce excessive reliance on imported oil, decrease carbon emissions, and thus create a more decentralized and resilient energy infrastructure. This study aims to verify the link between the progressive increase in solar energy consumption and the country’s economic advancement. The study also focuses on the how the Indian Government has invested in and employed the potential of solar energy after 1990, i.e., after becoming a liberalized economy by adopting the LPG (Liberalization, Privatization and Globalization). In this context, the present paper determines the main driving forces of solar energy consumption in India during 2007–2022. The time series data of solar energy generation and domestic energy consumption are retrieved from Energy Statistics Data published by Ministry of Statistics and Program Implementation. The data has been analyzed by using the Compound Annual Growth Rate (CAGR) renewable energy generation as well as domestic electricity consumption. Furthermore, Simple Linear Regression technique has been used to measure the impact of REG on domestic electricity consumption.


Download data is not yet available.


Bekun, F. V. (2022). Mitigating emissions in India: Accounting for the role of real income, renewable energy consumption and investment in energy. International Journal of Energy Economics and Policy, 12(1), 188–192.

Dominguez, C., Orehounig, K., & Carmeliet, J. (2021). Understanding the path towards a clean energy transition and post-electrification patterns of rural households. Energy for Sustainable Development, 61, 46–64.

Lyeonov, S., Pimonenko, T., Bilan, Y., Štreimikiene, D., & Mentel, G. (2019). Assessment of green investments’ impact on sustainable development: Linking gross domestic product per capita, greenhouse gas emissions and renewable energy. Energies, 12(20).

MNRE. (2022). Annual report 2021-2022: Ministry of New and Renewable Energy (MNRE), Government of India.

Ntanos, S., Skordoulis, M., Kyriakopoulos, G., Arabatzis, G., Chalikias, M., Galatsidas, S., Batzios, A., & Katsarou, A. (2018). Renewable energy and economic growth: Evidence from European countries. Sustainability (Switzerland), 10(8), 1–13.

Radmehr, R., Shayanmehr, S., Ali, E. B., Ofori, E. K., Jasińska, E., & Jasiński, M. (2022). Exploring the nexus of renewable energy, Ecological footprint, and economic growth through globalization and human capital in g7 economics. Sustainability (Switzerland), 14(19).

Saqib, N. (2022). Green energy, non-renewable energy, financial development and economic growth with carbon footprint: heterogeneous panel evidence from cross-country. Economic Research-Ekonomska Istrazivanja, 35(1), 6945–6964.

Sarkhanov, T., & Huseynli, N. (2022). Econometric Analysis of Renewable Energy Consumption and Economic Growth: The Case of Kazakhstan and Kyrgyzstan. International Journal of Energy Economics and Policy, 12(6), 163–167.

Sarkodie, S. A., Ahmed, M. Y., & Owusu, P. A. (2021). Ambient air pollution and meteorological factors escalate electricity consumption. Science of the Total Environment, 795, 148841.



How to Cite

Ajay Kumar Gautam, Verma, N. M. P., & Linda, N. . (2024). An Econometric Analysis of Electricity Consumption from Renewable Energy in India. Social Science Journal for Advanced Research, 4(1), 47–51.