India's Renewable Energy Surge: A 2025 Milestone in Clean Power Leadership

India has emerged as a global leader in renewable energy, crossing a landmark 250 GW of non-fossil fuel electricity generation capacity. This achievement reflects a remarkable threefold growth in just over a decade, highlighting the country’s accelerating transition towards a sustainable, low-carbon energy future. With solar, wind, hydro, biomass, and nuclear power forming a diversified energy mix, India is not only enhancing its energy security but also setting a benchmark in the global fight against climate change.

Record-Breaking Capacity Additions

India's renewable energy sector has achieved significant milestones, reflecting the nation's commitment to sustainable development. As of July 31, 2025, the Ministry of New and Renewable Energy (MNRE) reported the following cumulative installed capacities:

• Solar Power: 119,016.54 MW

• Wind Power: 52,140.10 MW

• Biomass (Bagasse) Cogeneration: 9,821.32 MW

• Biomass (Non-Bagasse) Cogeneration: 921.79 MW

• Waste to Energy (Off-Grid): 545.11 MW

• Small Hydro Power: 5,108.71 MW

These figures indicate a substantial increase in renewable energy capacity, aligning with India's ambitious targets.

Solar Power: A Dominant Force

Solar energy continues to be the cornerstone of India's renewable energy strategy. The country ranks third globally in solar power capacity, with a total of 119,016.54 MW installed. In the fiscal year 2024–25, India added a record 24.5 GW of solar capacity, more than doubling the previous year's addition. This surge was driven by government incentives, policy reforms, and increased investments in domestic solar manufacturing.

Wind Power: Steady Growth

Wind energy has also seen consistent growth. India ranks fourth globally in wind power capacity, with 52,140.10 MW installed. In the first half of 2025, the country added 3.4 GW of wind capacity, a 21% increase compared to the same period in 2024. This growth is attributed to favorable policies and the development of wind-rich regions.

Biomass and Small Hydro: Niche Contributions

Biomass and small hydro power contribute to India's renewable energy mix, though at a smaller scale. As of July 2025, biomass (bagasse) cogeneration stands at 9,821.32 MW, and small hydro power at 5,108.71 MW. These sources are particularly valuable in rural areas, providing decentralized energy solutions.

Challenges and Opportunities

Despite these achievements, several challenges persist:

• Transmission Infrastructure: The lack of adequate transmission infrastructure hampers the efficient distribution of renewable energy. Upgrading the grid is essential to accommodate the increasing renewable capacity.

• Policy Implementation: While policies are in place, their effective implementation at the state level remains inconsistent. Streamlining processes and ensuring compliance are crucial for sustained growth.

• Financing: Securing financing for renewable energy projects, especially in off-grid and rural areas, remains a challenge. Innovative financing models and incentives can address this issue.

India's renewable energy sector is poised for continued growth. The government's commitment to achieving 500 GW of non-fossil fuel capacity by 2030 is supported by initiatives such as the Production Linked Incentive (PLI) Scheme and the Solar Park Scheme. However, addressing infrastructure bottlenecks, enhancing policy coherence, and securing financing are essential to realizing these goals.

Advancements in Solar Manufacturing

India's solar manufacturing sector has witnessed remarkable growth. The country now boasts 100 GW of solar photovoltaic (PV) module manufacturing capacity, a significant leap from just 2.3 GW in 2014. This achievement is attributed to initiatives like the Production Linked Incentive (PLI) Scheme, which aims to bolster domestic manufacturing and reduce dependence on imports.

Green Hydrogen and Energy Storage Initiatives

The Ministry of New and Renewable Energy (MNRE) has been actively promoting research and development in green hydrogen and energy storage technologies. In September 2025, the first Annual Green Hydrogen R&D Conference was held, featuring over 25 startups and innovators showcasing advancements in clean energy solutions.

Additionally, India has made significant strides in energy storage, with 5.4 GW of collocated solar and battery energy storage systems (BESS) and 2.2 GW of standalone BESS awarded to developers in the first half of 2025. These developments are crucial for enhancing grid stability and integrating renewable energy into the national grid.

Future Outlook: Accelerating India’s Renewable Energy Transition

India's renewable energy sector is poised for a transformative decade, driven by ambitious policy frameworks, technological advancements, and substantial investments. The government's commitment to achieving 500 GW of non-fossil fuel-based energy capacity by 2030 underscores this trajectory. However, realizing this vision necessitates addressing existing challenges and capitalizing on emerging opportunities.

Policy and Regulatory Support

The Ministry of Power has outlined a Renewable Purchase Obligation (RPO) trajectory aiming for 43.33% by 2029–30, up from 24.61% in 2022–23. This progressive increase mandates that designated consumers source a higher percentage of their energy from renewable sources, thereby stimulating demand and market growth. Additionally, the introduction of Energy Storage Obligations (ESO) and incentives for decentralized renewable energy projects further bolster the sector's expansion.

Infrastructure Development

While states like Gujarat and Rajasthan have made significant strides in renewable energy installations, challenges persist in transmission infrastructure. For instance, Rajasthan's existing transmission capacity can handle only 14,000 MW, whereas commissioned projects exceed 19,500 MW, leading to approximately 25% of generated renewable energy being wasted during peak hours. Addressing these infrastructural bottlenecks is crucial to harness the full potential of renewable energy projects.

Investment and Technological Innovation

The government's initiatives, such as the Production Linked Incentive (PLI) scheme, have attracted significant investments in solar manufacturing, positioning India as a global leader in solar panel production. Furthermore, advancements in battery energy storage systems (BESS) and green hydrogen technologies are pivotal in enhancing grid stability and integrating intermittent renewable sources. For example, Gujarat's collaboration with Gujarat Urja Vikas Nigam Limited (GUVNL) to develop BESS aims to provide round-the-clock clean energy to industries, thereby fulfilling RPOs and stabilizing energy costs.

Challenges and Strategic Focus

Despite progress, challenges such as delayed transmission projects, financing constraints, and land acquisition issues persist. To mitigate these, a strategic focus on expediting infrastructure development, streamlining regulatory processes, and fostering public-private partnerships is essential. Additionally, enhancing the financial viability of renewable energy projects through innovative financing models and risk mitigation mechanisms will attract further investments.

Conclusion

India's renewable energy sector stands at a pivotal juncture. With sustained policy support, infrastructural enhancements, and technological innovations, the country is well-positioned to achieve its 2030 clean energy targets. Continued collaboration among government bodies, industry stakeholders, and financial institutions will be instrumental in realizing a sustainable and resilient energy future.

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Citation

Vivek Sharma, Dr. Chaggan Lal, Devanshu Devang, 2025. India’s Renewable Energy Surge: A 2025 Milestone in Clean Power Leadership. Renewable Energy Review, [in press]