India has reached 50% of its installed electricity capacity from non-fossil fuel sources, achieving this milestone five years ahead of its 2030 Paris Agreement commitment, according to the Ministry of New & Renewable Energy. Out of the nation’s 484.8 GW total capacity, 242.8 GW now comes from renewable and clean energy. Flagship initiatives, including the PM-KUSUM and PM Surya Ghar, have driven this transition. The government highlights upcoming priorities, including digital grid integration, battery storage expansion and green hydrogen investment. AI is also expected to underpin future infrastructure. (The Hindu Business Line)
Why does this matter? While this is undoubtedly an accomplishment, it must be remembered that India is highly dependent on thermal power to meet its base load demand, with coal-fired plants contributing over 70% of total electricity generation. Government data shows that clean sources, including wind, solar, hydropower, biomass and nuclear, currently make up just 28% of the country’s energy mix. Much work still needs to be done to connect this new capacity to the existing grid while state utilities remain financially wary of renewables, opting instead to continue their reliance on coal, particularly as the country’s electricity demand continues to surge.
India’s clean energy capacity achievement was led by rapid solar expansion, with installed capacity rising to 110.9 GW in June 2025, up from 2.82 GW in 2014, with 28.83 GW added in FY 2024-2025. Similarly, domestic solar manufacturing has expanded significantly, with module production capacity increasing from 2.3 GW to 88 GW and cell production from 1.2 GW to 25 GW. The above-mentioned flagship programmes have resulted in accelerated solar uptake in both residential and rural locations.
India also added 4.15 GW of wind power in FY 2024-2025, bringing the total to 51.3 GW, and hydropower hit 48 GW compared to 35.8 GW in 2014. Meanwhile, over five million small and medium biogas plants have come online across the country, and production of compressed biogas via 150 facilities has hit 1,211 mt per day, up from 8 mt per day in 2024. Together, these are contributing 11.6 GW to the country’s energy mix. The country also recently connected a 700 MW nuclear reactor to the grid, bringing its number of such facilities in operation to 25 with a combined capacity of 8.8 GW. A further 13.6 GW is in the pipeline, and India’s total nuclear capacity is likely to hit 22.5 GW in the early 2030s.
The next steps for India’s transition will involve doubling per capita clean electricity use, particularly in underserved and rural locations that will require distributed renewables and energy-efficient devices. It will also be key to create a digitally integrated grid to manage renewable inputs, demand shifts and bi-directional flows. Increasing the deployment of pumped hydro and battery energy storage systems (BESS) will bolster grid reliability and 24/7 access to power. Recycling of wind turbines, solar panels and batteries will promote sustainable material use, while investments in green hydrogen will enable multiple sectors to decarbonise. AI will increasingly aid demand forecasting, system efficiency, grid management and predictive maintenance.
However, India’s dependence on coal is set to stay, for at least the time being, to maintain grid stability. As a result, the country is exploring ways to cut emissions from coal-fired plants. These include making them more efficient so they can run at lower capacity and adopting carbon capture technologies. Another proposal is to use agricultural residue as a substitute in thermal plants. The idea has gained traction in and around Delhi, although other parts of the country have been slow to follow. More broadly, experts suggest that wider systemic transformations are needed to cut India’s thermal plant emissions, which would come at a great expense. Who would pay remains a difficult question.