India Achieves Energy Milestone: 50% of Power Capacity Now Derived From
India has achieved a significant climate milestone by reaching 50% of its installed power generation capacity from non-fossil fuel sources, surpassing its 2030 target set under the Paris Agreement by five years. Official reports indicate that non-fossil fuel sources now account for half of India’s total power generation capacity of 484.8 gigawatts (GW). This includes 234 GW from renewable energy sources such as solar, wind, and large hydropower projects, alongside 8.7 GW from nuclear energy. The achievement underscores India’s commitment to climate action and effective collaboration between government policies and private sector initiatives.
Growth of Renewable Energy Capacity
India’s rapid transition to renewable energy is largely attributed to sustained policy support and the proactive efforts of independent power producers (IPPs). Since 2014, the country’s solar capacity has skyrocketed from a mere 2.82 GW to an impressive 116 GW by June 2025, marking a remarkable 41-fold increase. Wind energy capacity has also seen substantial growth, more than doubling from 21 GW to 51.6 GW during the same period. Government initiatives, including the Production-Linked Incentive (PLI) scheme and the National Wind-Solar Hybrid Policy, have played a crucial role in enhancing domestic manufacturing, facilitating capital inflows, and streamlining project execution.
The private sector has been pivotal in this transformation, with Adani Green Energy Ltd (AGEL) leading the charge. AGEL is currently the largest renewable energy firm in India, contributing 8.66% to the nation’s total renewable energy capacity of 184.62 GW. In the fiscal year 2025, AGEL alone added 3.3 GW of solar, wind, and hybrid capacity, the highest among Indian companies. The firm aims to achieve 50 GW of renewable capacity by 2030, with its ambitious 30 GW Khavda project in Gujarat already operational in part.
Future Energy Demand and Storage Solutions
India’s energy demand is projected to rise significantly, with peak power demand expected to increase from 250 GW in FY2024-25 to 388 GW by FY2032. This surge is driven by rapid urbanization and digital growth, making timely climate action imperative. Despite having one of the lowest per capita emissions globally, India’s expanding population and energy consumption necessitate a robust response to climate challenges.
To address future energy needs, AGEL is prioritizing the development of Energy Storage Systems (ESS), including Hydro Pumped Storage Projects (PSPs) and Battery Energy Storage Systems (BESS). One notable project is a 500 MW PSP at Chitravathi in Andhra Pradesh, which is anticipated to generate over 1 terawatt hour (TWh) annually by 2027. AGEL has also signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Ltd to develop a 1,250 MW PSP, aiming to expand its PSP capacity beyond 5 GW by 2030.
Industry Leaders and Competitive Landscape
AGEL’s leadership in the renewable energy sector is complemented by other significant players such as ReNew Power and Greenko Power. ReNew Power, the second-largest renewable energy firm in India, plans to add over 10 GW in the next five years while expanding its decarbonization efforts and distributed solar services. Greenko is also working towards scaling its portfolio to 50 GW, reflecting the competitive landscape of the renewable energy market in India.
According to a report by Blackridge Research, AGEL is at the forefront of India’s renewable energy sector, followed by ReNew Power, Greenko Power, and Tata Power. The International Energy Agency (IEA) forecasts that India’s energy demand will grow 1.5 times faster than the global average over the next three decades, with commercial, residential, and industrial energy demand expected to increase by up to 35% between FY25 and FY30.
As India approaches its goal of installing 500 GW of non-fossil capacity by 2030, the focus will shift to enhancing energy storage, upgrading grid infrastructure, and implementing AI-driven load management systems. AGEL’s ability to execute large-scale projects and attract global investments will be crucial in leading India’s energy transition, supported by stable policies and a growing interest in green infrastructure.
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