India's energy milestone: Half of power capacity now from non-fossil sources; clean energy capacity driven by developers

Time of India

18-07-2025

India has reached a major climate milestone by achieving 50 % of its installed power generation capacity from non-fossil fuel sources, five years ahead of its 2030 target under the Paris Agreement, signed in December 2015.
As per official sources cited by PTI, non-fossil fuel sources now make up half of India's total power generation capacity of 484.8 gigawatts (GW). This includes 234 GW from clean energy, such as solar, wind and large hydropower projects, and 8.7 GW from nuclear energy. In comparison, the country's thermal power capacity stands at 242 GW.
Officials said the early achievement reflects India's strong climate commitment and the effective coordination between policy direction and private sector execution.
While India continues to have one of the world's lowest per capita emissions, its rapidly expanding population and rising energy consumption make timely climate action essential. Peak power demand is expected to surge from 250 GW in FY2024–25 to 388 GW by FY2032, driven by fast-paced urbanisation and digital growth.
The rapid expansion of renewables is credited to two main factors: sustained policy support and swift implementation by independent power producers (IPPs).
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Since 2014, India's solar capacity has grown from just 2.82 GW to 116 GW by June 2025, an extraordinary 41-fold jump. Wind capacity too has seen a strong rise, more than doubling from 21 GW to 51.6 GW in the same period.
Government schemes such as the Production-Linked Incentive (PLI), the National Wind-Solar Hybrid Policy, and updates to the Approved List of Models and Manufacturers (ALMM) have boosted domestic manufacturing, eased capital inflow, and simplified project execution, officials said.
Leading the private sector charge is Adani Green Energy Ltd (AGEL), India's largest renewable energy firm by operational capacity. AGEL currently accounts for 8.66 % of India's total renewable energy base of 184.62 GW, with a commissioned capacity of over 15,815.5 MW.
In FY25 alone, AGEL added 3.3 GW of solar, wind, and hybrid capacity—the highest by any company in India that year. The company has set its sights on building 50 GW of renewable capacity by 2030.
Central to this vision is its massive 30 GW Khavda project in Gujarat, spread over 538 square kilometres, five times the size of Paris. As of mid-2025, 5.5 GW is already operational, with full commissioning targeted for 2029.
AGEL has prioritised Energy Storage Systems (ESS), including both Hydro Pumped Storage Projects (PSPs) and Battery Energy Storage Systems (BESS), in its growth strategy.
One key project is a 500 MW PSP at Chitravathi in Andhra Pradesh, expected to deliver more than 1 terawatt hour (TWh) annually by 2027.
The company has also signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Ltd to develop a 1,250 MW PSP. In total, AGEL is working with five states to push its PSP capacity beyond 5 GW by 2030.
On the battery front, AGEL is preparing for large-scale deployment, with falling battery costs and increased variability in renewable output making storage integration vital for grid reliability.
According to a 2025 report by Blackridge Research, AGEL leads India's renewable energy space, followed by ReNew Power, Greenko Power, and Tata Power.
ReNew Power, the second-largest player, plans to add over 10 GW in the next five years and is expanding its decarbonisation and distributed solar services. Greenko, too, is working towards scaling its portfolio to 50 GW.
The International Energy Agency (IEA) predicts India's energy demand will grow 1.5 times faster than the global average over the next three decades. Between FY25 and FY30 alone, commercial, residential, and industrial energy demand is expected to increase by up to 35 %.
India's goal of installing 500 GW of non-fossil capacity by 2030 now appears well within reach. With the halfway mark already crossed, attention will shift to expanding energy storage, upgrading grid infrastructure, and adopting AI-driven load management.
AGEL's proven ability to deliver large-scale projects, attract global investment, and innovate in hybrid and storage systems will be critical. Backed by stable policy and growing interest in green infrastructure, the company is poised to lead the next phase of India's energy transition.
Officials said India's early achievement of its 50 % clean energy target is a testament to visionary policy and entrepreneurial spirit. As private players like AGEL and ReNew continue to scale investments in technology and infrastructure, India is not just on track to meet its Paris commitments but may well exceed them.
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