India’s Clean Energy Progress: How the Country is Transitioning from Coal to Renewables

India is the world's third-largest coal consumer, but is making significant strides in clean energy adoption. This article explores India's transition from coal to renewable sources, focusing on solar. 

India’s Reliance on Coal and Its Transition to Renewables 

India has traditionally relied heavily on coal for electricity generation, which remains one of the most carbon-intensive energy sources. Around 11 years ago, coal accounted for approximately 60% of India’s installed power capacity. Recent figures show this share has dropped to less than 50%, signalling a gradual but important shift. Despite coal still producing about 75% of the country’s electricity, the steady decline highlights India's efforts to reduce pollution and greenhouse gas emissions.

India’s Clean Energy Progress: Surge in Renewable Energy Capacity

In the fiscal year from April 2024 to April 2025, India added a record 30 gigawatts of clean energy capacity. This addition is enough to power nearly 18 million homes. Solar power, in particular, has become increasingly affordable, now costing about half as much as electricity generated from new coal plants. This price competitiveness is due to abundant sunshine, economies of scale in solar panel production, and the availability of cheap components.

India’s renewable energy pipeline includes nearly 170 gigawatts of projects set to be commissioned in the coming years. This rapid expansion underlines the country’s commitment to cleaner energy sources as demand for power grows with its expanding middle class.

Role of Government Policies and Private Investment

Government initiatives play a crucial role in India’s renewable energy growth. The country aims to add 50 gigawatts of non-fossil fuel power capacity annually over the next 5 years. Additionally, it plans for clean energy to supply 50% of its power by the end of this decade.

Several key measures have accelerated investments in renewables:

• A 2022 law made electricity cheaper for companies buying clean power.
   
• Federal recommendations encourage state utilities to increase renewable power procurement.
   
• A 2023 government investment plan of $452 million focused on clean energy projects.

Over the past decade, India has attracted roughly ₹6.6 trillion ($81 billion) in renewable energy investments, ranking it fourth worldwide for installed clean power capacity. Several large-scale projects, including one of the world's biggest wind and solar farms, are already operational or underway.

Read More: India’s Renewable Energy Surge: Check 2025 Outlook and Government Steps! 

Underutilisation of Renewable Energy Capacity

Despite rapid growth in installed capacity, renewables currently generate only 24% of India’s electricity. Coal remains dominant in actual generation, producing 3-quarters of the power. This discrepancy exists because of grid integration challenges and limited optimisation of renewable resources.

A report by the Centre for Science and Environment highlights that while the share of solar, wind, small hydro, and biomass in electricity generation has doubled since 2014 to 12%, it is still below the expected levels. The expansion of capacity must be matched with improvements in grid infrastructure and energy management for renewables to reach their full potential.

Challenges in Clean Energy Expansion

India faces several hurdles on its path to a clean energy future. The country must:

• Secure land for large-scale renewable projects, which often involves complex negotiations and delays.
   
• Develop a robust transmission infrastructure to carry power from remote renewable sites to consumption centres.
   
• Invest in energy storage technologies to address the intermittent nature of solar and wind power.

These challenges need urgent attention as India’s electricity demand is expected to triple by 2050. The growth will be driven by increased electric vehicle adoption, air conditioning, and industrial expansion.

Conclusion

India’s transition to clean energy is at a critical juncture. With ambitious targets and strong investment momentum, the country is making large gains in reducing its carbon footprint. However, success will depend on how effectively India integrates renewable energy into its grid and overcomes infrastructure bottlenecks.

The journey towards a more sustainable energy mix is complex but crucial for India’s future and its contribution to global climate goals.

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