Renewable Energy in India: Achieving 50% Non-Fossil Fuel Capacity

India achieves 50% renewable energy capacity five years ahead of schedule, setting a global model for sustainability.

India has achieved a milestone in its energy transformation, with 50% of its installed electrical capacity now coming from non-fossil fuel sources. This achievement puts the nation five years ahead of its Nationally Determined Contributions (NDCs) to the Paris Agreement. This stride underscores India’s commitment to its climate objectives and its ‘Panchamrit’ vision for a sustainable future. 

India’s Energy Transition

Let’s break this down. When countries signed the Paris Agreement in 2015, they made commitments to reduce carbon emissions.  India is committed to getting 40% of its electricity from non-fossil fuel sources by 2030. 

By July 2025, India reached 242.8 GW of non-fossil fuel capacity out of 484.8 GW total installed capacity. That’s exactly 50%. India’s energy policy has expanded its scope beyond just solar and wind to encompass all non-fossil fuel sources, such as large hydro and nuclear. This broader approach is designed to enhance energy security, combat climate change, and foster sustainable economic growth.

Real Stories Behind the Numbers

PM-KUSUM

Launched in March 2019, the PM-KUSUM scheme is a dedicated government program aimed at empowering farmers by promoting the adoption of eco-friendly energy alternatives. Its primary objective is to facilitate the installation of grid-connected solar power plants and solar pumps on agricultural lands. 

What makes this program successful is its focus on solving problems. Farmers get reliable power for irrigation, reduce input costs, and earn additional income. Haryana alone has deployed over 158,000 solar pumps and plans 70,000 more by 2026. 

PM Surya Ghar Muft Bijli Yojana

The PM Surya Ghar scheme, launched in February 2024, provides free electricity to 10 million households through rooftop solar. By March 2025, it had already reached 10 lakh homes.

The scheme is creating 17 lakh direct jobs across manufacturing, installation, and maintenance. More importantly, it’s changing how Indians think about energy from passive consumers to active producers. Cities like Chandigarh and Daman & Diu achieved 100% rooftop solar coverage on government buildings, showing what’s possible with effective implementation. 

National Green Hydrogen Mission

India’s National Green Hydrogen Mission represents thinking beyond immediate needs. The country aims to produce 5 million tonnes of green hydrogen annually by 2030, requiring 125 GW of additional renewable capacity.

What makes this strategy smart is its focus on hard-to-decarbonise sectors. Steel plants in Odisha are testing hydrogen in their production processes. Refineries in Rajasthan are exploring hydrogen-based fuel production. This isn’t just about replacing one fuel with another. But it is about creating entirely new industrial ecosystems.

The mission targets bringing green hydrogen costs down to $1.5 per kg by 2030, making it competitive with fossil fuel alternatives. India’s abundant renewable resources and favourable climate conditions provide natural advantages for large-scale hydrogen production.

Other Supporting Initiatives

Beyond these flagship schemes, several other initiatives are bolstering India’s energy transition. The Green Energy Corridor (GEC) project is crucial for integrating renewable power into the national grid.  This infrastructure is vital for evacuating renewable power from generation sites to consumption centres. 

Furthermore, initiatives promoting wind energy are expanding India’s renewable capacity and diversifying its energy mix. The promotion of Electric Vehicles (EVs) and biofuels blending is another key initiative contributing to the energy transition in the transport sector.

Benefits and Broader Implications of the Energy Transition

Energy Security and Economic Benefits

India’s renewable energy transition seeks to address a critical vulnerability: import dependence. The country spent over $100 billion on fossil fuel imports in 2022. Every gigawatt of renewable capacity reduces this dependence and keeps money within the domestic economy.

The economic transformation is visible in states like Rajasthan and Gujarat. Rajasthan’s solar parks have attracted billions in investment, creating employment for over 50,000 people directly and hundreds of thousands more in supporting industries. Gujarat’s wind energy sector employs over 40,000 people in manufacturing, installation, and maintenance.

Here’s what this means for ordinary people. Renewable energy is now cheaper than new coal-fired power plants. This cost advantage provides a market-driven incentive for continued expansion, reducing the need for government subsidies over time.

Environmental and Health Benefits

The environmental impact extends beyond carbon emissions. Cities like Delhi and Mumbai are experiencing cleaner air as coal-fired power plants reduce their contribution to the energy mix. Public health studies indicate that areas with higher renewable energy adoption show lower rates of respiratory diseases.

Rural areas benefit differently yet significantly. Solar-powered irrigation systems reduce the need for diesel generators, eliminating local air pollution. Villages with solar microgrids report better health outcomes as clean electricity replaces kerosene lamps and wood-fired stoves.

Challenges in Scaling Up Renewable Energy

Grid Integration Complexities

India’s power grid faces the challenge to incorporate variable renewable energy sources. States like Karnataka and Tamil Nadu sometimes generate more solar power than they can consume during peak hours. This forces them to either curtail generation or export to other states, creating revenue losses and operational challenges.

Although the Green Energy Corridor project is building new transmission lines specifically for renewable energy, the pace of grid modernisation must accelerate to match renewable energy growth.

Energy Storage Capacity

Energy storage remains one of the major challenges. The country currently possesses 4.86 GW of operational storage capacity. This figure is low compared to the projected future needs of 74 GW of energy storage capacity by 2031-32.

Financial Sector Challenges

Distribution companies face severe financial stress, with accumulated losses exceeding ₹5 lakh crore. This affects their ability to sign new renewable energy contracts and pay generators on time.

One of the factors behind this is the cross-subsidy mechanism, where residential and commercial consumers subsidise agricultural and industrial users. This creates a cycle where higher tariffs for some consumers lead to increased losses for distribution companies.

Global Leadership and International Cooperation

India’s renewable energy success positions it as a leader in global climate action. The International Solar Alliance (ISA), headquartered in India, facilitates technology transfer and financing for solar projects across developing countries. This initiative demonstrates India’s commitment to equitable energy access and capacity building on a global scale.

The principle of Common But Differentiated Responsibilities (CBDR) under the Paris Agreement recognises that developing countries have different capabilities and circumstances. India’s achievement shows that developing nations can take ambitious climate action while pursuing economic growth. 

Looking Ahead

India’s achievement of 50% non-fossil fuel capacity is not an endpoint but a milestone on a longer journey. The country targets 500 GW of renewable capacity by 2030 and net-zero emissions by 2070. Meeting these goals requires sustained effort across policy, technology, and financing.

Technology integration will play a crucial role in the future. Artificial Intelligence is transforming how India manages its renewable energy systems. Companies like Tata Power use AI for demand forecasting, reducing wastage by up to 15%. Smart meters in cities like Ahmedabad help consumers optimize their energy usage while providing real-time data to utilities.

The integration of electric vehicles with renewable energy creates new opportunities. Vehicle-to-grid technology allows EV batteries to store excess renewable energy and supply it back during peak demand. This dual-use approach maximises the value of both renewable energy and electric mobility investments.

Conclusion

50% non-fossil fuel installed capacity five years ahead of its 2030 target marks a leap in its energy transition journey. This milestone is a testament to the nation’s commitment to its climate pledges driven by domestic initiatives.

These programs are not merely about adding capacity; they are impacting energy access, fostering green job creation, enhancing energy security, and contributing to environmental sustainability and public health. The economic competitiveness of renewable energy sources, now often cheaper than new coal, provides a market-driven impetus for this transformation.

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