India’s Energy Initiative: Almost 50% of the Country’s Power Capacity

India’s power sector has reached a significant milestone, with its installed power capacity hitting 476 gigawatts (GW) as of June 2025. Notably, nearly half of this capacity, approximately 49% or 235.7 GW, is derived from non-fossil fuel sources. This shift towards cleaner energy is highlighted by the growth in renewable energy, which now accounts for 226.9 GW, alongside 8.8 GW from nuclear power. Despite these advancements, coal remains the dominant source of energy, underscoring the ongoing reliance on thermal power to meet the country’s electricity demands.

Growth of Renewable Energy

India’s renewable energy sector has experienced remarkable growth over the past decade. The installed solar capacity has surged more than 39 times, increasing from 2.82 GW in 2014 to an impressive 110.9 GW in 2025. Wind power has also seen significant contributions, currently standing at 51.3 GW. Overall, the total installed renewable energy capacity has tripled from 76.37 GW in March 2014 to 226.79 GW in June 2025, according to the Ministry of New and Renewable Energy (MNRE). This expansion has positioned India as a global leader, ranking fourth in total renewable energy and wind power capacity, and third in solar power capacity. Additionally, the solar photovoltaic (PV) manufacturing sector has flourished, with module capacity rising from 2.3 GW to 88 GW and cell capacity from 1.2 GW to 25 GW between 2014 and 2025.

Coal’s Continued Dominance

Despite the significant strides in renewable energy, coal remains a critical component of India’s energy landscape. Thermal power, primarily generated from coal, accounts for 240 GW or 50.52% of the total installed capacity. Coal is responsible for over 91% of all thermal-based energy, highlighting its essential role in fulfilling the country’s growing electricity needs. The government continues to support coal production, with Central Coalfields Ltd (CCL), a subsidiary of Coal India, planning to open two new coal mines in FY25. This initiative aims to boost coal output by 10 to 12 million tonnes. CCL’s production target is set at 150 million tonnes by 2030, an increase from the 87.5 million tonnes produced in FY25. The company also plans to establish four new washeries with a combined capacity of 14 million tonnes in the next two to three years to enhance coal quality for the power and steel sectors.

Future Energy Targets and Consumption Trends

Looking ahead, the Indian government has set an ambitious target of achieving 500 GW from non-fossil fuel sources by 2030. Currently, projects under implementation stand at 176.70 GW, with an additional 72.06 GW in the bidding stages. This proactive approach has led to a significant reduction in power shortages, which have plummeted from 4.2% in 2013-14 to just 0.1% in 2024-25. Concurrently, per capita electricity consumption has surged by 45.8% over the last decade, reaching 1,395 kilowatt-hours (kWh) in 2023-24. This increase reflects improved access to electricity and a rising demand for energy across the nation.

Balancing Energy Security and Decarbonization

As India navigates the complex landscape of energy security and decarbonization, its diversified power sector, which includes solar, wind, coal, and nuclear energy, positions the country as a pivotal player in the global energy transition. The ongoing investments in renewable energy and the continued reliance on coal illustrate the dual approach India is taking to ensure a stable and sustainable energy future. With a commitment to expanding its renewable energy capacity while maintaining coal production, India is poised to meet its growing energy demands while addressing environmental concerns.

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