Admin Team
18 May

India’s Energy Landscape: Powering Growth with Sustainable Energy

Introduction

India’s energy sector has undergone a major transformation over the past decade, balancing the twin objectives of rapid economic growth and sustainable energy transition. As one of the fastest-growing major economies, India is witnessing a sharp rise in electricity demand, making energy security and clean energy expansion critical policy priorities.According to the International Energy Agency (IEA), nearly 85% of the growth in global electricity demand over the next three years will come from emerging and developing economies, with India expected to contribute significantly. India’s share in global primary energy consumption is projected to double by 2035.As of June 2025, India’s total installed power capacity has reached 476 GW, with increasing contribution from renewable and non-fossil fuel sources.


ANALYSIS

Expansion of India’s Power Sector

India’s electricity generation and installed power capacity have expanded substantially over the last decade due to rising demand, infrastructure development and policy reforms.

Indicator2015–162024–25
Electricity Generation1,168 BU1,824 BU
Installed Capacity305 GW476 GW

India achieved:

  • 100% village electrification by April 2018
  • Electrification of over 2.8 crore households

Important schemes contributing to this expansion include:

  • Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
  • SAUBHAGYA Scheme
  • Unified National Power Grid

Improvement in Power Availability

India has significantly improved electricity access and reliability.

Key Improvements

ParameterEarlierPresent
Power Shortage4.2% (2013–14)0.1% (2024–25)
Per Capita Consumption957 kWh1,395 kWh

Per capita electricity consumption increased by 45.8%, indicating improved economic activity and household access.


India’s Energy Mix

India possesses one of the world’s most diversified energy mixes.

Installed Capacity Composition (June 2025)

SourceCapacity
Thermal Power240 GW
Solar Energy110.9 GW
Wind Energy51.3 GW
Total Non-Fossil Capacity235.7 GW

Non-fossil fuel sources now account for:

49% of India’s total installed power capacity

This includes:

  • 226.9 GW Renewable Energy
  • 8.8 GW Nuclear Energy

Despite renewable expansion, thermal power remains dominant with:

50.52% share of installed capacity


Renewable Energy Transition

India’s Clean Energy Commitment

India committed at:

COP26

to achieve:

500 GW non-fossil fuel electricity capacity by 2030

The Ministry of New and Renewable Energy (MNRE) is leading this transition.


Global Renewable Energy Leadership

As per:

IRENA Renewable Energy Statistics 2025

India ranks:

  • 4th globally in Renewable Energy Installed Capacity
  • 4th in Wind Power Capacity
  • 3rd in Solar Power Capacity

Solar Energy Growth

India’s solar sector has expanded rapidly.

Indicator20142025
Installed Solar Capacity2.82 GW110.9 GW

Solar capacity increased nearly:

39 times

A record:

23.83 GW

was added in 2024–25 alone.


Solar Manufacturing Expansion

SectorGrowth
Solar PV Module Capacity2.3 GW → 88 GW
Solar PV Cell Capacity1.2 GW → 25 GW

This reflects increasing:

  • Domestic manufacturing
  • Import substitution
  • Energy self-reliance

Wind Energy Sector

India is a global leader in:

Onshore Wind Energy

Installed wind capacity increased from:

  • ~21 GW (2014)
    to
  • 51.3 GW (2025)

India currently ranks:

4th globally in installed wind capacity


Wind Energy Potential

According to:

National Institute of Wind Energy (NIWE)

India’s estimated wind potential is:

1164 GW at 150 metres above ground level


International Solar Alliance (ISA)

The:

International Solar Alliance (ISA)

was launched by:

  • India
  • France

at:

COP21 (2015)

It is the:

First treaty-based intergovernmental organisation headquartered in India

As of March 2025:

  • 122 countries signed the Framework Agreement
  • 105 countries ratified it

One Sun One World One Grid (OSOWOG)

India proposed:

One Sun – One World – One Grid (OSOWOG)

to create:

A transnational solar energy grid

based on the principle:

“The Sun Never Sets”

ISA is leading this initiative.


Hydropower Development

Hydropower capacity increased from:

  • 35.8 GW
    to
  • 48 GW

between 2014 and 2025.India targets:

55 GW hydropower capacity by 2030

Support measures include:

  • ISTS charge waiver
  • Equity assistance for North-East projects

Bioenergy and Waste-to-Energy

Biopower capacity increased from:

  • 8.1 GW
    to
  • 11.6 GW

Compressed Biogas (CBG) projects increased from:

  • 1 project in 2014
    to
  • 150 projects by March 2025

National Bioenergy Programme (2021–26)

The programme was launched by:

Ministry of New and Renewable Energy

with an outlay of:

₹1715 crore

Components

  • Waste to Energy Programme
  • Biomass Programme
  • Biogas Programme

PM-Surya Ghar: Muft Bijli Yojana

Launched in:

February 2024

Objective

To provide:

Free electricity through rooftop solar systems

to:

1 crore households

Important Targets

  • 30 GW rooftop solar addition
  • 720 MMT CO₂ reduction
  • 1 lakh crore units electricity generation over 25 years

PM-KUSUM Scheme

Launched in:

March 2019

Objective

  • Solarisation of agriculture
  • Energy security for farmers
  • De-dieselisation of agriculture

Components

ComponentObjective
ADecentralised solar plants
BStandalone solar pumps
CSolarisation of grid-connected pumps

Target:

34.8 GW solar capacity


Solar Parks Scheme

The scheme promotes:

Large-scale grid-connected solar projects

Current Status

ParameterStatus
Approved Parks55
Capacity Approved39,958 MW
Commissioned Capacity12,804 MW

PLI Scheme for Solar PV Modules

The:

Production Linked Incentive (PLI) Scheme

aims to:

  • Boost domestic manufacturing
  • Reduce import dependence

Outlay

₹24,000 crore

Letters of Award issued for:

48,337 MW solar PV manufacturing capacity


PM JANMAN and Tribal Electrification

The:

PM JANMAN Scheme

targets development of:

Particularly Vulnerable Tribal Groups (PVTGs)

through solar electrification.

Targets

  • Electrification of 1 lakh households
  • Solarisation of public institutions
  • Solar lighting in Multi-Purpose Centres

Nuclear Energy Expansion

India’s nuclear sector expanded significantly between 2014–2025.

IndicatorGrowth
Nuclear Generation35,592 MUs → 56,681 MUs
Installed Capacity4,780 MW → 8,780 MW

India currently operates:

25 nuclear reactors

through:

Nuclear Power Corporation of India Limited (NPCIL)


Major Nuclear Projects

ProjectCapacityCommissioned
Kudankulam Unit-11000 MW2014
Kudankulam Unit-21000 MW2017
Kakrapar Unit-3700 MW2023
Kakrapar Unit-4700 MW2024
Rajasthan Unit-7700 MW2025

National Green Hydrogen Mission

Launched in:

January 2023

Financial Outlay

₹19,744 crore

Key Targets by 2030

  • 5 MMT Green Hydrogen production
  • Reduction of fossil fuel imports worth ₹1 lakh crore
  • Creation of over 6 lakh green jobs
  • Addition of over 100 GW renewable capacity
  • Reduction of nearly 50 MMT CO₂ annually

Thermal and Coal Sector

Despite renewable expansion:

Coal remains the backbone of India’s energy system

Thermal Capacity Composition

SourceCapacity
Coal219 GW
Gas20 GW
Diesel589 MW

Coal alone contributes:

Over 91% of total thermal energy capacity


Coal Sector Reforms

Coal production increased from:

  • 609.18 MT
    to
  • 1047.68 MT

between 2014–15 and 2024–25.

Major Achievements

  • Reduction in import dependence
  • Commercial coal mining reforms
  • Expansion of captive mining
  • Renewable integration in coal PSUs

Sustainability Measures in Coal Sector

Important sustainability initiatives include:

  • Plantation of 477.7 lakh trees
  • Development of eco-parks and mine tourism sites
  • Renewable energy adoption by Coal PSUs
  • Net Zero targets

Oil and Gas Sector

India is:

The world’s third-largest oil consumer

The sector is one of India’s:

Eight Core Industries


LPG Expansion

Indicator20142025
LPG Connections14.51 crore32.97 crore

Pradhan Mantri Ujjwala Yojana (PMUY)

Launched in:

May 2016

Objective

Providing:

Deposit-free LPG connections

to poor households.

Major Achievement

  • 10.33 crore PMUY connections by March 2025

PNG and CNG Expansion

Indicator20142025
PNG Connections0.254 crore1.47 crore
CNG Stations7387720

City Gas Distribution coverage expanded to nearly:

100% population and area coverage


Ethanol Blending Programme

Under:

National Policy on Biofuels

India targets:

20% ethanol blending by 2025–26

Progress

IndicatorGrowth
Ethanol Blending1.53% → 18.5%
Ethanol Procurement38 crore litres → 440.74 crore litres

Conclusion

India’s energy transition reflects a strategic balance between:

  • Energy security
  • Economic growth
  • Climate commitments
  • Sustainability

The country is simultaneously:

  • Expanding renewable energy
  • Strengthening grid infrastructure
  • Promoting nuclear and green hydrogen
  • Enhancing domestic manufacturing
  • Reducing import dependence

India’s evolving energy landscape positions it as a major global player in the transition toward a cleaner and more sustainable energy future.Updated - 22 June 2025 ; 10:25 AM | PIB

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