India is approaching a major milestone in its energy transition, with nearly half of its total installed power generation capacity now sourced from non-fossil fuels. As of June 2025, government data confirms that 49 per cent—equivalent to 235.7 GW of the nation’s 476 GW installed capacity—comes from cleaner sources, including 226.9 GW of renewables and 8.8 GW of nuclear energy.
This development signals a crucial shift in India’s energy landscape, driven by rapid additions in solar and wind energy. Solar power now accounts for 110.9 GW and wind energy contributes 51.3 GW to the national grid. Additionally, over 176 GW worth of renewable energy (RE) projects are currently under implementation, while another 72 GW are in the bidding stage, indicating a strong pipeline of future capacity.Despite this significant progress, coal-based thermal power continues to play a dominant role. Thermal sources still represent 240 GW—or 50.52 per cent—of the total installed capacity, with coal alone contributing over 91 per cent of that segment. The continued reliance on coal is critical to meeting India’s growing electricity demand, especially during periods of high consumption.
However, the broader energy transition is evident. Power shortages have decreased sharply from 4.2 per cent in 2013–2014 to just 0.1 per cent in 2024–2025. Meanwhile, per capita electricity consumption rose to 1,395 kWh in 2023–24, a 46 per cent increase from a decade ago. This reflects both improved access and rising living standards across the country.India’s energy sector remains one of the most diversified globally, with power generated from coal, gas, hydro, nuclear, and an expanding mix of renewables including solar, wind, biomass, and small hydro. The government has set a target of achieving 500 GW of non-fossil fuel capacity by 2030 as part of its climate commitments under the Paris Agreement.
To meet these ambitions, India must address challenges in financing, land acquisition, and infrastructure integration. Investment in the green energy sector remains far below requirement. According to global estimates, India needs to invest at least $68 billion annually to meet its renewable energy goals, yet the actual investment has remained under $15 billion in recent years.The country’s ability to balance conventional power generation with the growing share of clean energy will be critical. While coal continues to underpin energy security, the expansion of renewables is imperative for long-term sustainability and international climate leadership.
India’s progress shows that a low-carbon future is not only possible but already underway. The challenge ahead lies in maintaining the momentum while ensuring equitable energy access and environmental stewardship in a rapidly growing economy.
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