India’s Renewable Energy Capacity Additions Set to Surpass 35 GW in 2025

Team Finance Saathi

    03/Jan/2025

What’s covered under the article:

  1. India’s renewable energy capacity is projected to exceed 35 GW in 2025, driven by strong sector growth.
  2. Solar and wind energy sectors are expected to contribute significantly to India’s 2030 renewable energy goals.
  3. India is on track to meet 46% of its 500 GW target by 2030, with strong government support.

India’s renewable energy sector is on track to achieve significant capacity additions in 2025, with projections indicating that the country could exceed 35 gigawatts (GW) of new renewable energy capacity. This anticipated growth is driven by a strong project pipeline, favorable solar photovoltaic module prices, and a rise in wind energy manufacturing capacity. The country's renewable energy landscape is evolving rapidly, contributing to India's sustainability goals and energy transition.

From April to November 2024, India added nearly 15 GW of renewable energy capacity, marking a substantial increase from the 7.54 GW added during the same period last year. This growth is indicative of the country’s increasing commitment to scaling up its renewable energy infrastructure, but there are calls from industry experts to accelerate the pace of capacity additions to meet India’s ambitious renewable energy target of 500 GW by 2030.

India has already made impressive strides towards this goal, with a total of 203 GW of renewable energy capacity installed as of now. This includes 94 GW from solar energy, a significant contributor to India’s renewable energy mix. However, there remains a target of adding 300 GW in the next five years to stay on track to meet the 2030 target. Although the country’s current pace of renewable energy installation is substantial, it is still below the 60 GW annual average required to meet the target.

To meet this target of 500 GW, India is looking to ultra-mega renewable energy parks, which will provide large-scale infrastructure to generate electricity efficiently. In addition to this, the government’s aggressive tendering strategy and growing adoption of renewable energy in the commercial and industrial sectors are expected to drive continued growth. These factors are crucial in ensuring that India can ramp up its renewable energy generation and make substantial progress toward its climate action commitments.

By October 2024, India had crossed the 200 GW milestone in installed renewable energy capacity, reaching over 46% of the 500 GW goal. Projections for FY25 estimate an additional 19–21 GW in renewable energy capacity, driven by easing raw material prices and supply chain pressures. The wind energy sector, in particular, is expected to see considerable growth in 2025, with a projected addition of 20-30 GW of renewable energy, including a strong contribution from wind energy projects.

As India advances its renewable energy ambitions, the country is expected to not only increase its capacity but also drive innovation in the wind and solar energy sectors, ensuring that it remains a global leader in clean energy production. The successful integration of renewable energy into the grid will also help reduce the country’s dependence on fossil fuels and support its transition to a more sustainable energy future.

The focus on renewable energy will continue to play a crucial role in achieving India’s long-term sustainability goals, and it is clear that 2025 will be a pivotal year for India’s renewable energy sector. As wind energy and solar grow, India is poised to make significant strides towards achieving energy independence and contributing to the global fight against climate change.

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