New Delhi Sees Surge in Green Energy Projects This Fiscal Year
India’s power sector recorded a significant shift towards clean energy in April and May, with 6.9 GW of net capacity added—most of it from renewable sources. Fresh data from the Central Electricity Authority reveals that solar, wind, hydro, and nuclear power drove capacity growth, while no new thermal units were added. This surge in renewables marks a pivotal moment in India’s journey toward meeting its 2030 non-fossil energy goals, even as coal remains the country’s dominant baseload.
The first two months of FY26 witnessed an aggressive expansion in India’s renewable energy sector, with developers adding 6.45 GW—more than twice the capacity installed during the same period last year. The growth was largely propelled by the urgency to commission projects before the expiry of a 100% waiver on inter-state transmission charges for green energy, which ended in June. Projects completed before this deadline will enjoy the benefit for 25 years, prompting a rush in execution. The period also saw 700 MW of nuclear capacity and 200 MW of hydro capacity added. Notably, no thermal power plants were added, and about 430 MW of ageing fossil-fuel-based capacity was retired, underlining a clear shift in India’s power strategy. While total installed renewable capacity has now reached 226.75 GW, including hydro, the broader non-fossil fuel base stands at 283.45 GW—bringing the 500 GW 2030 goal one step closer.
Despite strong green energy growth, India’s dependence on coal remains substantial. The country’s total installed power generation capacity has reached 475.59 GW, with coal and lignite contributing 219.3 GW out of the 240 GW thermal portfolio. Energy experts caution that while India’s climate and energy security goals are ambitious, delays are likely unless infrastructure constraints, distribution losses, and financial challenges faced by power utilities are addressed. Sector analysts emphasise the need for significant investment in grid upgrades, battery storage, and digital infrastructure to enable large-scale integration of intermittent renewable energy sources. Additionally, regulatory clarity and support for emerging sectors like offshore wind and green hydrogen will be essential in accelerating the transition. While achieving the 500 GW non-fossil target by 2030 is deemed technically possible, projections by research firms indicate the goal might realistically be met by 2032 unless implementation bottlenecks are resolved swiftly.
India’s April–May power capacity additions reflect a strategic shift toward sustainable energy, with clean sources accounting for the majority of new installations. The end of the transmission waiver has spurred timely project completions, bolstering long-term energy savings and grid efficiency. However, challenges around ageing thermal infrastructure, distribution losses, and integration of renewables persist. Experts argue that real progress will depend on modernising grids, strengthening regulatory frameworks, and ensuring the financial health of power utilities. As India inches closer to its 500 GW non-fossil goal, sustained policy focus and investment will be critical in turning ambition into lasting transformation.
