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Renewable energy in India

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Solar Power Plant Telangana II in India
Thomas Lloyd Group · CC BY-SA 4.0

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Through India, Renewable energy and Fossil fuel

Because of availability and other constraints favoring fossil fuel and nuclear sources, India's power generation remains significantly skewed in favor of fossil fuel and nuclear sources roughly 70% of total power generated in 2025 despite possessing renewable energy infrastructure with more than 50% installed power capacity. Solar, wind and run-of-the-river hydroelectricity are environment-friendly, cheaper power sources. They are used as "must-run" sources in India to cater for the base load, and the polluting and foreign-import dependent coal-fired power is increasingly being moved from the "must-run base load" power generation to the load following power generation (mid-priced and mid-merit on-demand need-based intermittently-produced electricity) to meet the peaking demand only. Some of the daily peak demand in India is already met with the renewable peaking hydro power capacity. Solar and wind power with 4-hour battery storage systems, as a source of dispatchable generation compared with new coal and new gas plants, is already cost-competitive in India without subsidy. Based on plant load factor (PLF) trends, Ember energy and Centre for Research on Energy and clean Air, CREA project a fall in coal and fossil fuel PLF from 2025-2030 and question long term viability of fossil fuel sources in India. CREA also notes flexibility of renewable energy capacity as a more challenging task than renewable capacity adequacy.

The Union budget 2026 allocated ₹600 crore to the Green Energy Corridor for developing 6,000 km of intra-state transmission, improving renewable evacuation. In addition, funding for the Reformed Linked Distribution Scheme (RLDS) has increased 15% to ₹18,000 crore, focusing on smart metering and network upgrades. India at United Nations Climate Change conference 2021 (COP 26) set target of achieving 500 GW non-fossil fuel target by 2030, more than doubling installed non-fossil fuel capacity at the time, while also targeting net zero emissions by 2070. In 2025, India's power sector emission was reported to be 1,457 MtCO2, accounting for 10% of global power sector emissions.

Global comparison

Generation

India primarily relies on hydro, solar, wind, biomass, nuclear and fossil fuel sources for electricity. It is the 3rd largest generator of energy.

Generation capacity

As of April 2026, India has the world's 3rd largest renewable energy installed capacity below China and USA, the world's 3rd highest solar energy capacity, 4th highest wind energy capacity and 5th highest hydroelectric power capacity. Union Minister for New and Renewable Energy and Consumer Affairs, Food and Public Distribution, Shri Pralhad Joshi said India generated 51.5 percent of the country's total electricity demand in July 2025. India's goal is to achieve 500 gigawatts of installed electricity capacity from non-fossil sources by 2030.

Attractiveness score

Ernst & Young's Renewable Energy Country Attractiveness Index (RECAI) ranking evaluated India in terms of installed capacity and investment in renewable energy as follows:


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