Full Breakdown
India's Renewable Energy Transition: A Comprehensive Overview
9/1/2025, 11:20:11 AM
Current Landscape of Renewable Energy in India
India's renewable energy sector is undergoing a significant transformation, moving beyond traditional solar and wind energy to embrace emerging technologies such as battery energy storage systems (BESS), green hydrogen, and compressed biogas (CBG). As of June 30, 2025, the cumulative solar capacity reached 116.25 GW, making it the largest segment in the renewable sector. This includes 89.29 GW of ground-mounted solar and 18.84 GW of rooftop solar. The year 2024-25 saw a record addition of 23.83 GW in solar capacity, driven by an active auction pipeline and rising demand from the commercial and industrial (C&I) sector.
Wind power, the second-largest renewable source, stands at 51.67 GW, with 4.1 GW added in 2024-25. The onshore wind segment has benefited from hybrid projects and enhanced transmission planning, although the offshore wind sector faces challenges, including the cancellation of two major projects due to low developer participation.
Growth in Bioenergy and Green Hydrogen
India's bioenergy sector has also gained traction, with a total installed capacity of 11.6 GW as of mid-2025. This includes biomass power and waste-to-energy projects. The government has focused on CBG and ethanol blending initiatives, with ethanol blending levels rising from 1.53% in 2014 to 19.92% in June 2025.
The green hydrogen sector is experiencing a policy-driven surge, supported by the Green Hydrogen Policy and the National Green Hydrogen Mission. Recent auctions for green ammonia have attracted record-low bids, indicating India's growing competitiveness in this emerging market.
Storage Solutions and Hybrid Technologies
The demand for BESS is increasing, with 16 standalone BESS auctions held since 2024-25. The lowest tariff discovered in these auctions was Rs 208,000 per MW per month, reflecting the growing commercial viability of energy storage solutions. Hybrid projects are also gaining traction, with utilities and C&I clients seeking cleaner energy sources.
Official Statements & Responses
The Ministry of New and Renewable Energy (MNRE) has reported significant growth in solar module manufacturing capacity, which reached 91.5 GW as of June 30, 2025. The government emphasizes the importance of diversifying energy sources and strengthening domestic manufacturing to reduce import dependence.
Criticism & Opposition
Despite the progress, challenges remain. The offshore wind sector's setbacks highlight the need for sustained policy support and developer confidence. Additionally, the rapid expansion of renewable energy must be balanced with environmental and social governance (ESG) considerations, as many stakeholders still lack awareness and capacity for green projects.
What's Next for India's Renewable Energy Sector
Looking ahead, India aims to achieve a solar target of 280 GW by FY 2030. The focus will be on scaling annual wind installations, enhancing offshore wind projects, and further developing storage and hybrid technologies. Continued government support and private sector investment will be crucial in navigating the challenges and realizing the full potential of India's renewable energy landscape.
