India has achieved a historic milestone in the clean energy sector by reaching the 50% mark of its installed electricity capacity from non-fossil fuel sources, five years ahead of the 2030 target set under the Paris Agreement. This achievement reflects India’s strong commitment, policy initiatives, and significant investments in the renewable energy sector.
Let’s understand what’s happening in the renewable energy space and what this milestone means for investors.
What’s Happening?
On 14 July 2025, Renewable Energy Minister Pralhad Joshi announced via social media platform X (formerly Twitter) that the share of non-fossil fuel sources in the country’s total power generation capacity has reached 50.08%. Moreover, India has achieved this target five years ahead of the deadline set under the Paris Climate Agreement.
As of 30 June 2025, India’s total installed electricity capacity stood at 484.82 gigawatts (GW), out of which 242.78 GW (50.08%) came from non-fossil fuel sources, including solar, wind, large hydro, and nuclear energy.
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Government Policies and Initiatives
The Indian Government has implemented several policies and initiatives to boost the renewable energy sector and support the achievement of global climate goals. These initiatives include PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), PM Suryaghar (launched on 13 February 2024 with a budget of Rs 75,021 crore), Solar Park Development, and the National Wind-Solar Hybrid Policy.
The National Green Hydrogen Mission, approved on 4 January 2023 with a budget of Rs 19,744 crore (US$2.4 billion), focuses on promoting the production and export of green hydrogen. It has the potential to position India as a global leader in this emerging sector.
At the COP26 Summit (2021), India committed to achieving 500 GW of non-fossil fuel capacity by 2030, reducing carbon emissions by 1 billion tonnes, and achieving net-zero emissions by 2070.
Challenges and Solutions
India has made remarkable progress in clean energy in terms of installed capacity, but challenges still remain. The country continues to rely heavily on coal, and last year, two-thirds of the increased electricity demand was met by conventional sources of energy, particularly coal. Moreover, there are plans to add 80 GW of coal-based capacity by 2032.
Experts have suggested several solutions to address these challenges, including improving grid flexibility, promoting battery storage, developing smart grids, and encouraging hybrid power projects that combine sources like solar, wind, hydro, and storage.
What’s in it for Investors?
India is rapidly moving towards solar and other renewable energy sources, and in recent years, this sector has attracted significant investor attention, as some companies in the renewable energy space have turned out to be multibaggers for investors.
In terms of sector progress, Waaree Energies Ltd recently secured large solar energy orders of around 410 megawatts from Aditya Birla Renewables and 362 megawatts from Engie India. Adani Green Energy saw a 59% increase in solar module sales last year, out of which 1.72 gigawatts of modules were exported.
That’s not all, NTPC Green Energy Ltd is also heavily investing in solar and wind energy. It has already launched 1.6 GW of green energy projects. Additionally, work is in progress on 9.1 GW of projects, and plans for another 9.9 GW are underway.
What’s Next?
India aims to increase its non-fossil fuel capacity to 500 GW by 2030, which includes a significant expansion in solar (280 GW), wind (100 GW), and hydro power (70 GW). In addition, new technologies like floating solar panels (such as the 100 MW Ramagundam project) and bladeless wind turbines are also under development.
Initiatives like the National Green Hydrogen Mission and the Production Linked Incentive (PLI) scheme are helping India become a self-reliant, green economy. With the 2030 targets in sight, these efforts are not only boosting energy security and economic growth but also positioning India as a global leader in the energy transition.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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