At the same time, in the first half of 2025, India achieved an extraordinary advancement in its renewable energy sector. This historic accomplishment marks the nation’s speediest progress since early 2022. The country’s renewable power output, excluding large hydro, reached approximately 184.6 gigawatts (GW), contributing significantly to India’s goal of attaining 500GW of non-fossil capacity by 2030. Pretty amazing progress, right? It comes a complete five years in advance of India’s own target as specified in the Paris Accord.
Moreover, over the same period, coal-fired generation in India fell by almost 3%. This reduction demonstrates a shift towards cleaner energy sources amid the government’s ongoing efforts to transition away from fossil fuels. Fossil fuels accounted for over ¾ of the total power generation growth in 2024. This underscores how far we have to go to fully decarbonize and end our reliance on coal.
Renewable Energy Expansion
Most notably, the Indian government has have achieved incredible breakthroughs in adding its renewable energy capacity. Just in 2024, close to 28GW of solar and wind were installed into the country’s overall capacity. Furthermore, in the five months leading up to May 2025, an additional 16.3GW from wind and solar sources were integrated into the grid. This breakneck growth is not surprising, given India’s ambitious pledges to raise its share of non-fossil fuel energy.
The environment for renewables in India has never been better. We need to admit that almost half (#3) of its installed electricity capacity isn’t fossil fuel consumption anymore. This achievement underscores the success of government initiatives aimed at fostering renewable energy development, despite previous shortcomings in meeting the 2022 renewable target of 175GW.
Future Goals and Challenges
Even more coal India is looking to add another 80GW of new, coal-fired capacity between now and 2032. This decision embodies a pragmatic energy strategy that keeps our eyes on the ball — providing for energy needs today and into our sustainable future. Under a draft regulation, the city government will be required to stop new coal plants from being built within 10km of cities with populations above one million. Yet, at the end of this implementation road, almost 79% of India’s thermal power generating capacity will remain out of these rules’ ambit.
The predicted regulatory changes and move toward greater dependence on renewables is expected to reduce electricity prices for consumers. Analysts project that these changes could save consumers an average of Rs0.25 to Rs0.30 per unit, saving residential and commercial users money at the same time. Experts caution that India’s increasing dependence on fossil fuels will be a key hindrance. If India is to realize its ambitious clean energy goals, it must face this challenge directly.
