SYLLABUS
GS-3: Conservation, environmental pollution and degradation, environmental impact assessment.
Context: India has emerged as a major global player in the clean energy transition, ranking third globally in renewable energy installed capacity, according to the Renewable Energy Statistics 2026 released by the International Renewable Energy Agency (IRENA).
Key Highlights
- The country has surpassed Brazil and now stands behind only China and the United States.
- Installed Capacity and Growth: India’s total non-fossil fuel installed capacity reached 283.46 GW as of March 31, 2026, including 274.68 GW from renewable energy and 8.78 GW from nuclear power.
- Renewable energy capacity has increased 3.6 times since 2014.
- During FY 2025–26, the country recorded a historic addition of 55.3 GW in non-fossil capacity, marking the highest-ever annual increase.
- Solar leads the energy mix with 150.26 GW, followed by wind at 56.09 GW and large hydro at 51.41 GW.
- Bioenergy contributes 11.75 GW, and small hydro accounts for 5.17 GW.
- Distributed Renewable Energy added 16.3 GW in FY 2025–26, driven by rooftop solar and PM-KUSUM.
- Integration of battery storage, electric vehicles, and solar-based household systems is increasing.
- Early Achievement of Climate Target: India achieved 50% of its cumulative installed electricity capacity from non-fossil sources in June 2025.
- This milestone was reached five years ahead of its 2030 climate target.
- Future Targets: India aims to achieve 500 GW of non-fossil capacity by 2030 as part of its COP26 commitment.
- Proposed targets for 2031–35 include a 47% reduction in emissions intensity, 60% power capacity from non-fossil sources, and creation of a 3.5–4 billion tonne carbon sink.
Significance of Renewable Energy
- Climate Change Mitigation: Renewable energy reduces greenhouse gas emissions by lowering dependence on fossil fuels, as seen in India achieving 50% installed capacity from clean sources ahead of its NDC targets, reflecting a strong climate commitment.
- Energy Security: By promoting domestic sources like solar, wind, and hydro, renewable energy minimizes reliance on imported fuels and ensures long-term energy stability during global supply disruptions.
- Rural Development and Electrification: Decentralized systems like rooftop solar and PM-KUSUM enhance rural electrification, improve agricultural productivity, and reduce dependence on diesel, strengthening rural livelihoods.
- Technological Advancement and Innovation: Investments in renewables accelerate innovation in technologies like battery storage, perovskite solar cells, and green hydrogen, with positive spillover effects across industries.
- Alignment with Global Commitments: The expansion of renewables supports India’s obligations under the Paris Agreement and contributes to Sustainable Development Goals like clean energy (SDG 7) and climate action (SDG 13).
Key Challenges and Areas for Concern
- Capacity–Generation Mismatch: Despite thermal capacity falling below 50%, coal still contributes nearly 70–75% of actual electricity generation due to the low-Capacity Utilization Factor (CUF) and intermittency of solar and wind, creating a structural hurdle for deep decarbonization.
- Intermittency and Grid Stability Issues: Renewable energy generation is weather-dependent, leading to fluctuations in supply, which were evident during peak demand stress events (e.g., 250 GW demand in 2024) and price crashes due to curtailment, highlighting the need for grid balancing mechanisms.
- Inadequate Energy Storage Infrastructure: With less than 5 GW of storage capacity compared to over 160 GW of intermittent renewable capacity, India faces a critical gap in energy storage that limits effective renewable integration and reliability.
- Supply Chain and Infrastructure Constraints: Dependence on China for battery materials and constraints in key technologies like HVDC transformers expose India to geopolitical risks and infrastructure bottlenecks in scaling renewable energy.
Initiatives Behind India’s Renewable Energy Progress
- PM Surya Ghar Yojana: The PM Surya Ghar scheme has enabled 23.9 lakh households to install rooftop solar systems, adding about 7 GW of distributed clean energy capacity while promoting energy independence at the household level.
- PM-KUSUM Scheme: The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) drives solarisation in agriculture by installing standalone pumps and reducing diesel dependence, thereby ensuring reliable and clean energy for farmers.
- Solar Park Development Programme: The approval of 55 solar parks across 13 states with nearly 40 GW capacity has accelerated large-scale solar deployment, supporting grid integration and economies of scale in renewable energy generation.
- Production Linked Incentive (PLI) Scheme: The ₹24,000 crore PLI scheme strengthens domestic solar manufacturing by incentivising production across the value chain, reducing import dependence and building a self-reliant clean energy ecosystem.
- National Green Hydrogen Mission (NGHM): Launched in 2023, the mission aims to produce 5 MMT of green hydrogen annually by 2030, positioning India as a global hub for clean fuel while reducing emissions and fossil fuel imports.
- Green Hydrogen Certification Scheme (2025): This scheme establishes emission standards for hydrogen production, ensuring credibility and facilitating India’s integration into global green hydrogen markets.
- Global Biofuels Alliance (GBA): Launched during India’s G20 Presidency, the alliance promotes international cooperation on biofuels, enhancing clean energy adoption and strengthening global energy transition efforts.
- International Solar Alliance (ISA): Co-founded by India, ISA mobilises global solar finance and technology transfer, expanding affordable solar deployment especially across developing countries.
Sources:
PIB
Bussiness World
PIB
Hartek