India’s Clean Energy Achievements in 2025

India achieved significant gains in clean energy capacity in 2025 but requires structural reforms to secure Aatmanirbharta and long-term energy security.

Overview of the Clean Energy Capacity in India

Global Rank: India ranks fourth in total installed renewable capacity, at 253.96 GW, with over 23% year-on-year growth.
Capacity Expansion: In 2025, India added a record 44.51 GW by November, nearly double the 25 GW added in 2024.
Non-Fossil Sources: Non-fossil sources accounted for 51.5% of installed power capacity, achieving the COP26 target five years early.
Solar Growth: Solar capacity increased by 34.98 GW to 132.85 GW by November 2025, reflecting a year-on-year growth of 41%.
Wind Growth: Wind capacity increased by 5.82 GW to 53.99 GW by November 2025, recording a 12.5% year-on-year growth.
FDI Inflows: Clean energy attracted $3.4 billion in FDI during the first nine months of FY 2025, accounting for over 80% of power-sector inflows.

India’s Advantage for Clean Energy

Solar Abundance: With around 300 sunny days annually and high solar insolation, India has a theoretical solar potential exceeding 750 GW.
Cost Efficiency: Competitive auctions have driven solar and wind tariffs to record lows, making renewables in India among the cheapest globally.
Hydrogen Market: Replacing the 5 million tonnes of grey hydrogen already consumed would create an instant domestic market for green hydrogen.
Strategic Geography: A 7,500 km coastline has immense offshore wind potential, and Rajasthan and Gujarat’s plains are ideal for solar-wind hybrid projects.
China Alternative: With vertical integration, India can emerge as a China-plus-one manufacturing hub for renewables.

Government Initiatives for Clean Energy in India

National Green Hydrogen Mission (NGHM): Promotes commercial green hydrogen production to position India as a net fuel exporter.
Production-Linked Incentive (PLI) for Solar PV: Encourages domestic manufacturing of high-efficiency solar modules, reducing import dependence and boosting GW-scale capacity.
PM-KUSUM Scheme: Subsidises solar irrigation pumps to increase farmer income and reduce diesel use in agriculture.
Solar Parks & CPSU Projects: Large-scale solar parks and PSU projects target 40,000 MW capacity by 2025–26 with shared infrastructure.
Green Energy Corridor (GEC): Integrates renewable energy into the grid and provides a pan-India market for trading green power.
National Bioenergy Programme: Supports biomass, biogas, and BioCNG projects for rural energy generation and sustainable feedstock use.

India’s Challenges with Clean Energy

DISCOM Stress: Delayed payments from financially weak state DISCOMs cause liquidity constraints for renewable developers.
PPA Renegotiation: Attempts by some state governments to renegotiate Power Purchase Agreements (PPAs) after the auction undermine the sanctity of contracts and investor confidence.
Grid Bottlenecks: Nearly 60 GW of renewable projects remain stranded due to inadequate transmission infrastructure.
High Capital Cost: The cost of renewable financing in India is about 80% higher than in developed countries, mainly due to perceived risks.
Hydrogen Cost: Green hydrogen currently costs $4-5 per kg, far higher than grey hydrogen based on fossil fuels.

Way Forward

Vertical Integration: Expand domestic production of polysilicon and wafers to reduce dependence on Chinese upstream components.
Contract Sanctity: Introduce a legal framework to prevent unilateral renegotiation of Power Purchase Agreements by states.
Grid Expansion: Build transmission infrastructure ahead of generation capacity to prevent stranded renewable assets.
Payment Security: Strengthen payment security mechanisms to protect developers against DISCOM defaults and high financing costs.
Energy Storage: Accelerate deployment of battery energy storage and pumped hydro to manage renewable intermittency.

India’s clean energy push signals a shift “from carbon-intensive growth to climate-resilient development.”
Its long-term success hinges on grid expansion, storage, contract sanctity, and domestic manufacturing depth.

Reference: The Indian Express

PMF IAS Pathfinder for Mains – Question 487

Q. “India’s pursuit of net-zero emissions by 2070 depends critically on the effectiveness of its clean energy strategy.” Evaluate how India’s clean energy transition can support long-term economic growth while meeting climate commitments. (250 Words) (15 Marks)

Approach

Introduction: Write a brief introduction about clean energy in India and mention the latest data.
Body: Write how India’s clean energy transition can support long-term economic growth, mention key constraints and the way forward.
Conclusion: Focus on climate-resilient development to reach the goal of net-zero emissions by 2070.