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India Renewable Power Output Surges 24.4% in H1 2025, Highest Since 2022

Written by: Team Angel OneUpdated on: 2 Jul 2025, 5:31 pm IST
ndia's renewable energy output rose 24.4% in Jan-Jun 2025, driven by wind and solar, reducing coal use and hitting 17% generation share.
India Renewable Power Output Surges 24.4% in H1 2025, Highest Since 2022
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India's renewable energy sector has witnessed its strongest growth in three years, achieving a 24.4% increase in power generation during the first half (H1) of 2025. This surge, led by an uptick in wind and solar capacity, also contributed to pushing the country's transition goals forward while coal-based output took a marginal dip.

Massive Growth in Renewable Energy Output in H1 2025

From January to June 2025, renewable power generation in India reached 134.43 billion kilowatt hours, representing a 24.4% rise over the same period in 2024. This marks the highest semiannual growth rate since 2022. The increase is largely attributed to quick deployment of wind and solar energy projects, particularly following a renewed policy push after the country missed its earlier 2022 clean energy milestone.

Decline in Coal Dependency Amid Slower Demand

As renewables surged, coal-fired electricity slipped by nearly 3% during the same period. This was driven by cooler summer conditions, which lowered power consumption, and stockpiled coal reserves following earlier purchases. Import reliance also declined, as India reduced overseas coal procurement amid moderate demand and high domestic inventory.

India's Long-Term Renewable Energy Targets

The Indian government has set an ambitious target of reaching 500 GW of non-fossil power capacity by 2030. This benchmark includes solar, wind, hydro and nuclear energy sources. As of now, the country's non-fossil capacity has reached 235.6 GW. While the outlook remains positive for continued capacity additions, some estimates suggest the goal could be delayed by 2 years unless critical grid improvements and energy storage investments are expedited.

Read More: Navratna PSU SECI Crosses 60 GW Power Sale Agreement Milestone For Renewable Energy Projects!

Capacity Additions Strengthen Outlook

In the first 5 months of 2025 alone, India added 16.3 GW of solar and wind capacity, nearly matching the momentum seen in the full year of 2024. The period ahead is expected to see the addition of another 15.7 GW, bringing the annual total to an impressive 32 GW. This acceleration underscores a renewed national focus on expanding the green energy footprint to meet domestic needs and global commitments.

Grid Modernisation and Storage: The Critical Need

Despite growth in capacity and generation, India's ageing grid infrastructure continues to pose integration challenges. Effective renewable adoption requires robust transmission upgrades and comprehensive investment in energy storage systems. Without these enhancements, the grid’s reliability could be threatened during peak generation hours, restraining future gains.

Conclusion

India's 24.4% renewable power growth in H1 2025 signals strong momentum in its green transition journey. This rise occurred even as coal usage dropped and power demand slowed. With consistent investments in capacity and grid technology, India remains aligned with its 2030 clean energy goals, albeit with potential delays if integrations aren’t addressed.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Jul 2, 2025, 12:01 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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