India has hit a pivotal milestone in its clean energy transition, achieving 50% of its installed electricity capacity from non-fossil fuel sources, surpassing its 2030 Paris Agreement target five years ahead of schedule. This progress, marked by the fastest growth in renewable power output since 2022, signals a significant shift in the country’s energy landscape. However, the journey is far from over, and the recent developments present a complex narrative of progress and challenges.
The first half of 2025 saw a notable decrease in coal-fired generation by nearly 3%, while renewable energy sources surged. Yet, fossil fuels still dominated the increase in total power generation in 2024, contributing to more than two-thirds of the growth. This dichotomy underscores the dual approach India is taking to meet its energy demands: expanding renewable capacity while also planning to add 80 GW of coal-fired capacity by 2032.
India’s accelerated push towards solar and wind energy projects has been impressive. In 2024, nearly 28 GW of solar and wind energy were added to the country’s capacity, with an additional 16.3 GW from wind and solar added in the first five months of this year. As of the end of last month, renewable energy, excluding large hydro, constituted approximately 184.6 GW. This rapid scaling up is crucial for India to meet its ambitious target of achieving 500 GW of non-fossil capacity by 2030, which includes contributions from hydro and nuclear power sources.
The Indian government is promoting further decarbonisation through several initiatives, including the adoption of battery storage, circularity in solar and wind component production, and the development of green hydrogen. These steps are essential for integrating higher shares of renewable energy into the grid and ensuring a sustainable energy future.
However, the recent relaxation of the 2015 mandate requiring coal-fired power plants to install flue-gas desulphurisation (FGD) systems adds a layer of complexity. The new regulations, which will only be enforced for plants within 10 km of cities with populations exceeding one million, exempt nearly 79% of India’s thermal power capacity. This move, aimed at cutting electricity costs, raises questions about the balance between economic considerations and environmental commitments.
“Plants in critically polluted areas or non-attainment cities will undergo individual assessments,” stated government officials. This approach highlights the need for a nuanced strategy that addresses both energy affordability and environmental protection.
The recent developments in India’s energy sector present a mixed bag of achievements and challenges. While the country has made significant strides in renewable energy adoption, the continued reliance on fossil fuels and the relaxation of environmental regulations pose hurdles. The path forward will require a delicate balance between meeting energy demands, ensuring economic growth, and upholding environmental commitments. As India continues to navigate this complex landscape, the global community will be watching closely, eager to see how the country’s energy transition unfolds and the lessons it offers for other nations grappling with similar challenges.