India Crosses 49% Mark in Green Energy Capacity

India’s energy landscape has turned a historic corner, as non-fossil fuel sources now account for nearly 49% of the country’s total installed power capacity—an achievement that underscores the nation’s accelerating shift toward a cleaner, greener, and more resilient energy future.

Out of the country’s total 476 gigawatts (GW) of installed power, approximately 235.7 GW now comes from renewable and nuclear energy sources, according to recent government data. This includes a renewable energy contribution of 226.9 GW, with solar power leading the charge, followed by wind, small hydro, biomass, and waste-to-energy. Nuclear energy adds another 8.8 GW to the mix.

This milestone is not just a number—it reflects India’s determined green energy transition, built on a decade of strategic policy moves, technological advancements, and growing global investor confidence.

Clean Energy Surge Signals a Sustainable Power Shift for India

India’s solar energy growth stands out as a global success story. From a humble 2.82 GW in 2014, solar capacity has soared to 110.9 GW in 2025, making India the third-largest solar power producer in the world.

Wind energy, too, has seen robust growth, now standing at 51.3 GW, placing India fourth globally in wind capacity.

The growth has been underpinned by a parallel expansion in domestic manufacturing. India’s solar module production capacity has jumped from 2.3 GW to 88 GW, while solar cell production has increased from 1.2 GW to 25 GW—highlighting India’s push for clean energy self-reliance under its “Make in India” strategy.

Green Capacity Rising, But Coal Still Powers the Grid

While India’s installed green capacity nears the halfway mark, its actual electricity generation still leans heavily on coal. Thermal power, primarily coal-based, continues to provide the country’s baseload electricity, with coal-fired stations making up more than 50% of total installed capacity.

Central Coalfields Limited (CCL), a subsidiary of Coal India, has announced plans to open two new coal mines in FY25, with a long-term production goal of 150 million tonnes annually by 2030. Four new coal washeries are also being developed to improve coal quality—indicative of the government’s intent to ensure energy security even as it transitions to cleaner fuels.

This dual-track strategy—rapidly expanding renewables while maintaining coal for base load and industrial stability—highlights the balancing act India must navigate: achieving climate targets while ensuring reliable and affordable electricity for its growing population.

Power Access and Efficiency Hit New Highs

Despite the complex energy mix, India has made commendable progress in energy access and efficiency over the past decade:

• Power shortages have plummeted from 4.2% in FY14 to just 0.1% in FY25.
  
• Per capita electricity consumption has grown by nearly 46%, reaching 1,395 kWh—a clear sign of rising living standards and improved infrastructure.
  

These gains not only reflect technical advancements but also underline inclusive growth, as millions more homes and businesses come online with reliable electricity.

Energy Mix: A Global Example of Sustainable Transition

India’s power sector today reflects a microcosm of global energy challenges—how to simultaneously drive economic growth, maintain energy security, and honour climate commitments.

By 2030, India has pledged to install 500 GW of non-fossil fuel capacity and reduce carbon emissions intensity by 45% under its Nationally Determined Contributions (NDCs) to the Paris Agreement. This month’s milestone shows the country is firmly on track.

Yet the continued dependence on coal also reflects a broader structural challenge: the need for massive grid upgrades, energy storage systems, and flexible load management to fully harness intermittent renewables like solar and wind.

Policy, Investment, and Global Momentum

India’s success in expanding green energy is not accidental. A combination of forward-thinking policies, financial incentives, and global collaboration has been instrumental.

Notably:

• The Production Linked Incentive (PLI) schemes for solar manufacturing
  
• Foreign direct investment (FDI) liberalisation in the renewable energy sector
  
• A strong public-private partnership (PPP) ecosystem for infrastructure development
  
• Bold leadership through the International Solar Alliance (ISA) and Green Hydrogen Mission
  

These efforts are not only positioning India as a renewable energy leader, but also helping develop an export-ready clean energy supply chain.

What’s Next: The Road to 500 GW

Looking ahead, India’s energy planners must continue to drive:

• Grid integration technologies for variable renewable power
  
• Battery storage and pumped hydro for balancing supply
  
• Green hydrogen production for hard-to-abate sectors
  
• Smart demand response systems in urban and industrial zones
  

India’s path to 500 GW of non-fossil capacity by 2030 is ambitious, but as this latest achievement proves, it is both realistic and within reach—provided the right investments, regulatory stability, and community engagement continue.

A Turning Point in India’s Energy Future

India’s crossing of the 49% green energy capacity milestone is a powerful indicator of its climate resilience, economic ambition, and technological strength. While coal remains a key component of today’s energy mix, the momentum of renewables is undeniable.

The next phase of the energy transition will require even greater integration of clean power, storage, and green fuels into the grid—ensuring that capacity gains translate into actual generation and emissions reduction.

With global scrutiny increasing and sustainability becoming central to national development, India’s energy future is poised for a bold, bright, and balanced transformation.

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