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