India has achieved an incredible milestone in its power sector. As of September 30th, 2025, the country has surpassed an installed electricity capacity of over 500 gigawatts (GW). This monumental achievement is a testament to the nation’s commitment to growing its renewable portfolio. Most surprisingly, more than 50 percent of this capacity comes from non-fossil fuel sources. Bailout money is already being discussed in government for its electric utilities. This action would signal either privatization of these entities or a future IPO.
That’s because India’s energy landscape has changed drastically over the past few years. The country switched on its 256.09 GW nonfossil fuel based power capacity. This record-breaking accomplishment is more than 51% of its overall capacity. This accomplishment dovetails beautifully with the ambitious targets set by India at Conference of the Parties 26 (COP26). India promised to reach 50% of its installed electric power capacity from non-fossil fuel sources by 2030 and celebrated reaching that goal five years early.
Renewable Energy Contributions
On July 29, 2025, India achieved its greatest renewable energy penetration in electricity generation ever. Renewables met a striking 51.5% of the nation’s total electricity demand, which was at 203 GW that day. Solar energy has the largest installed capacity for all renewables at 127.33 GW of installed capacity. Wind power is a close second, with 53.12 GW of capacity. Meanwhile, India has made considerable progress in terms of adding renewable energy capacity. Consequently, it has emerged as the fourth-largest renewable energy producer globally, with an installed capacity of 257 GW.
The growth in renewable energy – particularly solar – has been impressive. India’s renewable energy capacity has tripled from 81 GW in 2014. In financial year 2025-26, the country made a record increase of 28 GW in nonfossil fuel capacity. This achievement is tangible evidence of its deep commitment to fostering high quality, sustainable energy solutions.
Balancing Fossil Fuels and Renewables
Even with this phenomenal amount of renewable energy, fossil-fuel-based sources remain critical to India’s electricity mix. The country has a big installed capacity of fossil fuels, standing at 244.80 GW. This figure represents approximately 49% of its total generation capacity. In the same fiscal year, India increased its fossil-fuel capacity by 5.1 GW. This growth highlights a clear reminder of the need for an all-of-the-above, balanced approach to energy production.
Even as India has rapidly expanded its power sector, the government has realized that reform is imperative. To receive much-needed bailout funds, it is exploring options that include privatizing electric utilities and transferring managerial control or retaining control while listing them on the stock exchange. This strategic shift is intended to improve operational efficiency and facilitate investment in India’s rapidly changing power sector.
International Collaboration and Future Goals
Along with domestic developments, India is pursuing international collaborations to support the expansion of renewable energy. In 2021, the government pledged Rs2.21 billion (around $25 million) to the Africa Solar Facility under the auspices of the International Solar Alliance. This funding will aid the development of mini-grids and distributed renewable energy projects across Africa, showcasing India’s commitment to global renewable energy initiatives.