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This June, India quietly achieved what many nations are still only hoping to do. The country reached 50% of its installed electricity capacity from non-fossil fuel sources, five years ahead of the 2030 target it committed to under the Paris Agreement. This is not just a climate milestone; it is a strategic achievement that reshapes the narrative around India’s development, positioning the country as both a pioneer in clean energy and a champion of climate justice.
The significance of this development is best understood through the lens of India’s Panchamrit, the five nectar elements announced by Prime Minister Narendra Modi at COP26 in Glasgow, viz., 500 GW of non-fossil energy capacity by 2030; 50% cumulative electric power capacity from non-fossil fuels by 2030; reduction of 1 billion tonnes in projected carbon emissions by 2030; a 45% cut in carbon intensity by 2030 (compared to 2005 levels); and net-zero emissions by 2070.
These goals reflect a deeper shift away from viewing climate action as a constraint and toward embracing it as an opportunity. India’s clean energy journey began in earnest in 2014, when the government ramped up renewable energy targets from 2,000 MW to 175 GW. Since then, solar capacity has surged from 2.82 GW to an impressive 116 GW to date – a remarkable 41-fold increase. Wind energy capacity has also seen significant growth, more than doubling from 21 GW to 51.6 GW during the same period. As of June 2025, 242.78 GW of India’s 484.82 GW electricity capacity came from non-fossil fuels, a dramatic rise from just 30% in 2014.
From Megawatts to Market Transformation
What makes India’s achievement remarkable is not just the headline figure. It is the engine of policies, technologies, independent power producers, and people-centred programmes behind it.
Consider the Pradhan Mantri Surya Ghar – Muft Bijli Yojana, launched in 2024. This rooftop solar initiative is revolutionizing household energy, aiming to bring solar power to one crore homes through subsidies of up to ₹78,000 and 300 units of free electricity per month. Supported by a digital-first national portal, this scheme is making solar energy accessible, affordable, and aspirational. Over 17 lakh jobs have been created under the scheme, and entire communities are being empowered to become micro-entrepreneurs in the clean energy economy.
Other transformative policies include PM-KUSUM, which gives farmers solar-powered irrigation tools and opens doors for agrivoltaics; solar parks that reduce land and transmission bottlenecks; a National Wind-Solar Hybrid Policy that maximises energy yields; a growing bioenergy sector that supports circular economy goals while generating rural employment; and a Production-Linked Incentive scheme paired with revisions to the Approved List of Models and Manufacturers have played a crucial role in strengthening domestic manufacturing, attracting capital, and streamlining project development.
Together, these efforts have not only decarbonised power generation but also improved air quality, enhanced incomes, and strengthened India’s global credibility. This is not just an energy policy. It is economic, social, and climate policy rolled into one!
The Paradox of Progress
Yet, this success story comes with an important caveat. While 50% of installed capacity now comes from non-fossil fuel sources, actual electricity generation from renewables remains much lower, at around 28%. This gap is driven by lower capacity utilisation factors for solar and wind compared to coal or nuclear power. Solar panels, for instance, operate at an average efficiency of about 20%, while coal plants deliver around 60% and nuclear plants exceed 80%.
This means that India still relies on coal for approximately 75% of its electricity generation. Peak demand, particularly in the evening, is met by fossil fuels, as solar output fades post-sunset. Coal India’s plans to reopen 32 mines and launch new greenfield projects are stark reminders of the persistent role fossil fuels play in India’s energy landscape, at least for now.
Financially stressed state utilities often favour coal because it offers reliable, base-load power. Until renewables can match that reliability through large-scale battery storage, grid resilience, and hybrid energy projects, coal will continue to dominate electricity generation, even as India scales up clean capacity.
Bridging the Generation Gap
The next phase of India’s energy transition must focus on turning installed capacity into a dependable supply. Key priorities include massive rollout of Battery Energy Storage Systems and pumped hydro to ensure solar energy is available even after sunset; smart grid modernisation to handle two-way power flows, decentralised production, and real-time demand management; hybrid energy projects that blend solar, wind, hydro, and storage for round-the-clock power(despite land aggregation issues and high storage costs); energy equity and access by doubling per capita clean electricity use in rural areas with efficient appliances and innovative tariff structures, such as daytime-discounted power; circular economy practices for solar panels, batteries, and wind turbines to reduce waste and improve sustainability; green hydrogen investments for industrial decarbonisation across hard-to-abate sectors; and AI and digital tools for demand forecasting, predictive maintenance, and grid automation, with strong cybersecurity safeguards.
India’s annual renewable energy bid target of 50 GW until 2027–28 reflects the country’s ambitious plans.but achieving 500 GW by 2030 will depend not only on adding capacity, but also on creating a system where every megawatt installed leads to clean, affordable, and reliable electricity, delivered to people when they need it.
Lighting the Way Forward
India’s early achievement of 50% non-fossil fuel installed capacity is a subject of national pride and global significance. It proves that climate responsibility need not come at the cost of development. It shows that clean energy is not a Western luxury but a universal imperative, and that with the right leadership, innovation, and public participation, progress is possible at scale.
But this is not the destination. It is the halfway mark. To reach the next milestone of 500 GW by 2030 and net-zero by 2070, India must double down on integration, innovation, and inclusion. It must bridge the gap between potential and performance, and between ambition and access.
India has already lit the lamp. Now it must shine brighter—not just for itself, but for a world in desperate need of a new development model.
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