By Abbas Nazil
India added approximately 50 gigawatts of renewable energy capacity in 2025, marking a significant milestone in the country’s energy transition and climate commitments.
The world’s fastest-growing economy now has a total installed power generation capacity of about 510 gigawatts, consisting of 247 GW from fossil-fuel sources and 262 GW from non-fossil fuel sources, including 254 GW derived from renewable energy.
This achievement places India five years ahead of its 2030 target under the Paris Agreement, with half of the country’s installed capacity now coming from clean energy.
The addition of 50 GW in 2025 was backed by investments totaling nearly ₹2 trillion, reflecting both government support and private sector participation.
Union Minister for New and Renewable Energy, Pralhad Joshi, highlighted that about 45 GW of renewable capacity was added between January and November 2025, driven primarily by nearly 35 GW of solar installations.
The government expects to maintain a similar pace in 2026 despite ongoing challenges such as land acquisition, right-of-way issues, and delays in signing power purchase agreements.
Public sector financial institutions, including IREDA, PFC, REC, IIFCL, SIDBI, and NaBFID, have played a critical role in funding renewable projects, deploying approximately ₹10.79 lakh crore since 2014, including ₹2.68 lakh crore in the 2024-25 fiscal year alone.
Industry leaders noted that schemes such as PM Surya Ghar Yojana and PM Kusum contributed significantly to growth, while investments in domestic manufacturing of solar cells and ingot-wafers are expected to reduce dependence on imports.
Challenges remain, including grid integration, long-term financing gaps, rising raw material costs, and last-mile connectivity in rural markets.
Experts stressed that future growth will rely on large-scale projects, hybrid energy parks, energy storage solutions, microgrids, and enhanced transmission networks to ensure reliable and dispatchable renewable power. END
India’s energy sector is now shifting focus from mere capacity expansion to capacity absorption, grid stability, and programme-based initiatives, laying a strong foundation for scaling renewable energy, enhancing energy security, and maintaining its leadership in the global clean energy transition.
