ENERGY TRANSITION AND RENEWABLE CAPACITY
ENERGY TRANSITION AND RENEWABLE CAPACITY
India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity capacity from non-fossil fuel sources in June, 2025 – more than five years ahead of the target set under its Nationally Determined Contributions (NDCs) to the Paris Agreement. This significant milestone underscores the country’s steadfast commitment to climate action and sustainable development. Out of the total installed generation capacity of 484.82 GW (as on 30th June, 2025), the non-fossil fuel based installed capacity was 242.78 GW, which is 50.08% of the installed capacity.
The share of non-fossil fuel capacity in the total installed power generation capacity has increased from 32.54 % (as on 31.03.2014) to 51.93 % (as on 31.12.2026) and its details are given at Annexure.
Government of India has taken various measures to address the challenges of climate change through energy transition initiatives. The Government is implementing reforms towards a secure, affordable and sustainable energy system to power a robust economic growth and have taken several measures like increasing the share of installed RE capacity & its uptake and promoting energy efficiency in all sphere of life.
The Government of India has undertaken several initiatives to achieve 500 GW non fossil capacity by 2030. Steps taken by Government of India to promote and accelerate renewable energy capacity in the country include the following:
Further, Nuclear power has huge potential to ensure long term energy security and is vital for India’s clean energy transition towards Net Zero by 2070. It is a clean and environment friendly source of base load power. The lifecycle emissions of nuclear power are comparable to those of renewables like hydro and wind. The Government of India has set an ambitious target of 100 GW nuclear power capacity by 2047.
ANNEXURE
The details of the share of non-fossil fuel-based capacity in the total installed power generation capacity as on 31.03.2014 and 31.12.2025:
As on
Total Installed Capacity (GW)
Non-Fossil fuel-based Capacity
(GW)
% share of Non-Fossil Capacity w.r.t. Total Installed Power Generation Capacity
31.03.2014
249.42
81.16
32.54%
31.12.2025
513.73
266.79
51.93%
This information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a written reply in the Rajya Sabha today.
- 100% Inter State Transmission System (ISTS) charges have been waived for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025 (with waiver tapering off 25% annually till June 2028), for co-located BESS projects commissioned by June 2028, for Hydro PSP projects where construction work awarded by June 2028, for Green Hydrogen Projects commissioned till December 2030 and for offshore wind projects commissioned till December 2032.
- Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE (FDRE) projects have been issued.
- Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for issuance of RE power procurement bids of 50 GW per annum by ‘Renewable Energy Implementing Agencies’ (REIAs) from FY 2023-24 to FY 2027-28.
- Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
- Laying of new transmission lines and creating new sub-station capacity has been supported under the Green Energy Corridor Scheme for evacuation of renewable power.
- To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been prepared till 2032.
- Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being implemented to provide land and transmission to RE developers for installation of RE projects at large scale.
- Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been launched.
- Government of India, in September 2023, approved a Viability Gap Funding (VGF) scheme for development of Battery Energy Storage Systems (BESS). BESS capacity of 13.22 GWh is under implementation with a budgetary allocation of Rs 3,760 Cr. under this scheme. Considering the increasing demand of BESS, Ministry of Power, in June 2025, has approved another VGF scheme for development of 30 GWh BESS capacity with a financial support of Rs 5,400 Cr from Power System Development Fund (PSDF).
- To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO which is applicable to all designated consumers under the Energy Conservation Act 2001 will attract penalties on non-compliance. RCO also includes specified quantum of consumption from Decentralized Renewable Energy sources.
- “Strategy for Establishments of Offshore Wind Energy Projects” has been issued.
- To achieve the objective of increased domestic production of Solar PV Modules, the Govt. of India is implementing the Production Linked Incentive (PLI) scheme for High Efficiency Solar PV Modules.
- 12,723.5 MW of Hydro Electric Projects are under construction. Further, 4,274 MW of Hydro Electric Projects are under various stage of planning and targeted to be completed by 2031-32.
- Ministry of Power has initiated the steps to promote Pumped Storage Projects (PSPs) to support renewable energy integration and grid stability. At present, 10 Pumped Storage Projects totaling 11,870 MW are under construction in the country.