India is poised to achieve a major clean energy milestone by December 2025, with non-fossil fuel-based power generation capacity expected to touch 50% of the country’s total installed capacity. This marks a major shift in India’s energy sector as it intensifies its transition to renewable and low-emission energy sources.

According to government data accessed by Moneycontrol, India is well on track to balance its power generation portfolio between renewable and fossil-based sources within this calendar year. If realised, this milestone would place India alongside countries such as China, Brazil, Norway, Iceland, Denmark, and New Zealand, all of which already have a 50% or higher share of clean energy capacity.

Installed Capacity: Where India Stands Today

As of now, India’s total installed power generation capacity stands at 4,70,448 megawatts (MW).

• Of this, 53% or 2,47,590 MW comes from fossil fuel-based power stations, mainly coal and lignite

• The remaining 47% or 2,22,858 MW is powered by non-fossil fuel sources, including:

  • Solar energy

  • Wind energy

  • Hydropower

  • Nuclear power

  • Biomass and waste-to-energy technologies

While this near parity reflects significant progress in India's renewable journey, officials are confident that the balance will tip in favour of non-fossil fuels by December 2025.

“In FY26, nearly 12,000 MW of new thermal capacity will be added. But during the same period, at least 32,000 MW of renewable capacity will also be commissioned. So we expect to reach a 50:50 scenario in our power generation portfolio as early as December,” said a senior official from the Ministry of Power.

The official added that even in a worst-case scenario — where some renewable installations face delays — the 50% non-fossil capacity target would be achieved within FY26.

Capacity ≠ Consumption: The Hidden Challenge

While India is about to cross the halfway mark in installed capacity, the actual share of renewable energy in power consumption remains low — estimated at 13–15%.

This is because installed capacity doesn't directly translate to real-time consumption, especially in renewables, which are intermittent and dependent on weather conditions.

• Solar panels only produce power during daylight hours

• Wind turbines require wind availability

• Storage solutions (like battery storage and pumped hydro) are still in early stages of mass adoption

Other technical and logistical challenges also persist:

• Grid integration and load balancing

• Transmission infrastructure delays, especially in remote areas where solar and wind farms are built

• Curtailment risks during surplus generation periods

• Regulatory bottlenecks and state-level discom inefficiencies

Thus, experts caution that while installed renewable capacity may rise rapidly, substantial policy and infrastructure upgrades are needed to ensure corresponding growth in actual usage or consumption.

India’s 2030 Target: 500 GW from Non-Fossil Sources

India has pledged under its Nationally Determined Contributions (NDCs) to achieve 500 GW of installed non-fossil fuel energy capacity by 2030.

This includes:

• 280 GW from solar

• 140 GW from wind

• 70 GW from hydropower

• 10 GW from nuclear and biomass

With over 220 GW already in place, India must add around 280 GW more in five years, or ~55 GW annually, to stay on track.

So far, renewable additions have picked up pace:

• FY24: Over 17 GW added

• FY25 (projected): 25–30 GW addition

• FY26 (projected): 32 GW targeted

The government has also cleared large-scale projects under:

• Green Energy Corridors (GEC)

• Solar Parks Scheme

• Wind-Solar hybrid tenders

• Round-the-clock RE supply models

International Comparisons: India Joins the Clean Energy League

Once India crosses the 50% clean capacity mark, it will join a select group of countries where the majority of power generation potential is from non-fossil sources.

Some comparisons:

• China: ~55% of power capacity from renewables

• Brazil: ~82% from hydro, solar, wind, and bioenergy

• Norway: Over 98% from hydropower

• Iceland: Nearly 100% from hydro and geothermal

• Denmark: Around 60% from wind and solar

Unlike developed economies, India’s clean energy push comes amidst surging power demand, urbanisation, and industrialisation. Hence, achieving 50% clean capacity is seen as a significant developmental milestone.

Clean Energy Investments and Global Trends

According to the International Energy Agency (IEA):

• India spent $100 billion on clean energy in 2024

• China spent $627 billion, making it the global leader

India's investment covers:

• Solar PV installations

• Wind farms (onshore and offshore)

• Energy storage systems

• Green hydrogen pilot projects

• Transmission upgrades

Private sector participation has also surged, with players like:

• Adani Green, ReNew Power, Tata Power, NTPC Green, and JSW Energy

• Participating in gigawatt-scale auctions and green power purchase agreements (PPAs)

Outlook: What Happens Next?

India’s progress in reaching a 50% non-fossil capacity is only one part of the energy transition.

Key areas requiring attention:

1. Grid modernisation to manage variability in renewable supply

2. Battery and pumped hydro storage scale-up

3. Faster approvals and land clearances for RE projects

4. Policy incentives for hybrid and round-the-clock RE

5. State-level coordination, especially with DISCOMs

Experts also point out the need for a national carbon pricing mechanism and cross-border electricity trade frameworks to further accelerate India's energy transition.

Conclusion

India is on the cusp of a landmark energy transition moment — reaching 50% non-fossil power generation capacity by December 2025. This transformation signals a powerful shift toward decarbonisation, energy security, and sustainability.

However, challenges remain in turning capacity into consumption, and in ensuring that the power system is robust, flexible, and inclusive.

The milestone, when achieved, will mark India’s entry into a new era of green energy leadership, setting the tone for meeting its 2030 and 2070 climate goals.

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