India Surpasses Non-Fossil Fuel Power Milestone Ahead of Schedule
India has made significant strides in its energy transition journey, achieving a major milestone with 50% of its installed electricity capacity sourced from non-fossil fuel sources as of June 2025. This achievement comes more than five years ahead of the target set under the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement, reflecting India’s strong commitment to climate action and sustainable development.
As of June 30, 2025, India’s total installed power generation capacity stands at 484.82 GW, with non-fossil fuel-based capacity reaching 242.78 GW, representing 50.08% of the total. This marks a remarkable increase from 32.54% of total capacity on March 31, 2014, demonstrating the effectiveness of government measures aimed at accelerating the transition to renewable energy.
Government Initiatives to Promote Renewable Energy
The Government of India has implemented various initiatives to tackle climate change and promote renewable energy. Among these is the ambitious plan to achieve 500 GW of non-fossil fuel capacity by 2030. Key actions include:
- The waiver of 100% Inter-State Transmission System (ISTS) charges for solar and wind power projects, effective until June 2025, with a gradual reduction thereafter.
- Standard bidding guidelines for competitive bidding processes to acquire power from diverse renewable sources.
- Aiming to issue renewable energy power procurement bids of 50 GW annually through designated agencies.
- Allowing up to 100% Foreign Direct Investment (FDI) in the sector under automatic routes.
- Establishing new transmission lines and sub-stations via the Green Energy Corridor Scheme to facilitate renewable power evacuation.
Ongoing and Future Projects
To bolster renewable energy capacity, several schemes have been introduced, including the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) and the National Green Hydrogen Mission. The government also approved a Viability Gap Funding scheme for developing Battery Energy Storage Systems, with substantial budget allocations aimed at enhancing energy storage capacity.
Additionally, the integration of pumped storage projects and nuclear energy is seen as crucial components of the country’s long-term energy strategy, with a goal of reaching 100 GW of nuclear capacity by 2047. These efforts highlight the commitment to a clean energy transition that aligns with global standards.
Looking Ahead
The focus on renewable energy marks a pivotal shift for India. As the nation continues to make progress towards its energy goals, the commitment to sustainable practices remains clear. The achievement of 50% non-fossil fuel capacity is just one of the many milestones on India’s path to a greener future.
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