Syllabus: GS3/Renewable Energy
Context
- India has achieved the highest-ever annual wind energy capacity addition of 6.05 GW in 2025-26, taking cumulative installed capacity to over 56 GW.
About
- It represents an increase of nearly 46% over the capacity in FY 2024-25.
- States such as Gujarat, Karnataka, and Maharashtra have been the primary contributors to capacity addition during the year.
- This milestone reflects renewed momentum in the sector driven by improved policy clarity, transmission readiness, competitive tariff discovery, and a strong project pipeline.
India’s Energy Share
- As of 2025, the country’s total installed electricity capacity has crossed 500 GW, reaching 509.6 GW.
- The total non-fossil power installed capacity has reached 262.74 GW in 2025 which is 51.5% of the total installed electricity capacity in the country.
- The solar energy installed capacity has reached 132.85 GW in 2025.
- Fossil-fuel-based sources: 244.80 GW, about 49 % of the total, making coal a source of up to almost half the energy needs. Also, coal contributes about 74% of total electricity production in India.
- Globally, India stands 3rd in Solar Power installed capacity, 4th in Wind Power capacity and 4th in total Renewable Energy capacity.
India’s Energy Targets
- Emissions Intensity Reduction: India has committed to reducing the emissions intensity (CO₂ per unit of GDP) of its GDP by 47% by 2035 from 2005 levels.
- India has already reduced its emissions intensity by about 36% between 2005 and 2020.
- Expansion of Non-Fossil Fuel Capacity: India has committed to achieving 60% of its installed electric power capacity from non-fossil fuel sources by 2035.
- India has already achieved more than 50% non-fossil fuel capacity by 2026, ahead of its earlier target.
- Creation of Carbon Sink: India has committed to creating a carbon sink of 3.5 to 4 billion tonnes of CO₂ equivalent through forest and tree cover by 2035.
Challenges in Transition
- Limited Share in Actual Generation: Despite rapid capacity addition, RE’s share in electricity generation rose only from 19.6% (2013-14) to 22% (2024-25) due to structural issues.
- Intermittency Challenge: Solar and wind are variable in nature, making round-the-clock supply difficult. Hence, coal remains essential for grid stability and meeting peak demand.
- Limited energy storage: Large-scale energy storage (like battery systems) remains underdeveloped, restricting the grid’s ability to use RE during peak demand or low generation periods.
- Import dependence: India relies heavily on imported critical minerals (like lithium, cobalt, rare earth elements) for batteries, solar, and wind technologies, exposing it to global supply risks.
- Financial & Policy Hurdles: High upfront costs for solar, wind, and storage systems.
- There are delays in policy implementation and regulatory approvals.
- Land & Resource Constraints: Limited availability of land for large-scale solar/wind projects.
- Environmental and social conflicts in land acquisition.
- Technological & Skill Gaps: Need for advanced technologies in storage, smart grids, and hybrid systems.
- Shortage of skilled workforce in RE installation and maintenance.
Government Initiatives
- National Solar Mission (NSM): It was launched in 2010, it has set ambitious targets for solar capacity installation, including grid-connected and off-grid solar power projects.
- National Clean Energy Fund (NCEF): It was established to support research and innovation in clean energy technologies and projects that help in reducing greenhouse gas emissions.
- National Wind Energy Mission: Focuses on the development and expansion of wind energy in India. The target for wind energy capacity is set at 140 GW by 2030.
- Concessional Custom Duty on certain components and raw materials used in manufacturing of wind turbines, graded Waiver of Inter-State Transmission System (ISTS) charges till 2028.
- Financial Support & Incentives: Viability Gap Funding (VGF) for large-scale solar and hybrid projects.
- Production Linked Incentive (PLI) scheme for solar PV manufacturing.
- Subsidies for rooftop solar and off-grid systems.
- Renewable Energy Certificates (RECs) to promote green power trading.
- Infrastructure Development: Green Energy Corridor to improve RE grid integration.
- PM-KUSUM Scheme for solarizing agricultural pumps.
- Revamped Distribution Sector Scheme (RDSS) to strengthen DISCOMs.
- Emerging Technologies & Projects: Support for Battery Storage, hybrid systems, and RTC power.
- Promotion of offshore wind and floating solar projects.
- Focus on Hydrogen Mission for green hydrogen development.
- International Partnerships: ISA (International Solar Alliance) launched by India to promote global solar cooperation.
- Collaboration with countries & global funds for clean energy investment and technology.
Source: PIB
