Towards India’s Clean Energy Revolution

This editorial is based on “The ‘critical factor’ in India’s clean energy ambitions,” which was published in The Hindu on 16/10/2025. The article discusses how securing and developing critical minerals like lithium, cobalt, and Rare Earth Elements (REEs) through domestic mining, processing, recycling, and global partnerships is essential for India’s clean energy transition, energy security, and leadership in the green economy.

For Prelims: Critical minerals, Rare Earth Elements (REEs), National Green Hydrogen Mission, COP26, Battery Energy Storage Systems (BESS), India–Australia Renewable Energy Partnership, National Solar Mission, PM-KUSUM Yojana, International Solar Alliance (ISA), PM Surya Ghar Muft Bijli Yojana 

For Mains: Main Drivers Behind India’s Clean Energy Revolution, Major Challenges Facing India’s Clean Energy Transition, Strategic Interventions to Ensure India's Effective Clean Energy Transition

As India races toward a clean energy future, securing critical minerals like lithium, cobalt, and Rare Earth Elements (REEs) has become a strategic imperative. These minerals power electric vehicles, solar panels, wind turbines, and energy storage, forming the backbone of India’s green transition. Yet, with heavy import dependence, global competition, and limited domestic processing, India faces significant challenges in building resilient supply chains, scaling mining operations, and fostering recycling infrastructure to achieve its renewable energy and net-zero goals.

What are the Main Drivers Behind India’s Clean Energy Revolution? 

• Ambitious National Renewable Capacity Targets: India set a bold goal of 500 GW non-fossil fuel electricity capacity by 2030 under its COP26 commitments, aiming for net-zero emissions by 2070. 
  • As of March 2025, India’s renewable energy capacity reached 220.10 GW, growing by nearly 29.5 GW in FY 2024-25—a record addition fueling momentum. 
    • These massive annual additions also drive down the Levelized Cost of Electricity (LCOE) for renewables. 
  • Solar energy dominates this growth with 105.65 GW installed capacity, including rooftop and off-grid systems. 
• Diversity and Expansion of Renewable Sources: India has emerged as a global clean energy leader, ranking 4th globally in Renewable Energy (RE) Installed Capacity, 3rd in solar, 4th in wind, and boasting the world’s fastest-growing renewable energy program. 
  • Wind power capacity stands at 50.04 GW, growing steadily alongside solar. 
  • Emerging sectors like hybrid systems, round-the-clock power, and energy storage projects are increasingly implemented to tackle intermittency issues. 
• Green Hydrogen and Industrial Decarbonization: The National Green Hydrogen Mission aims to make India a global hub for the production, use, and export of green hydrogen and its derivatives, targeting 5 MMT per annum by 2030.  
  • The mission is expected to attract over ₹8 lakh crore in investments in the green hydrogen sector and generate around 6,00,000 jobs by 2030. 
  • Industrial zones and ports are being developed as green hydrogen hubs, fostering export-oriented decarbonization strategies. 
• Financial Incentives and Regulatory Reforms: The Union Budget 2025-26 allocated ₹26,549 crore for renewables and ₹60 billion for Green Energy Corridors to improve grid infrastructure and connectivity. 
  • Policies like the Inter-State Transmission System (ISTS) charge waivers  (extended by three years until June 2028  )and high-capacity renewable auctions (50 GW annual) reduce project costs and incentivise investments. 
• Growing Foreign and Domestic Investments: India attracted ₹42,000 crore (USD 4.88 billion) FDI in clean energy in 2023, reflecting strong global investor confidence. 
  • The government’s PLI scheme incentivises domestic solar module manufacturing, reducing import dependence. 
• Community and Decentralised Solar Power: Rooftop solar schemes like PM-Surya Ghar Muft Bijli Yojana democratize access, with villages like Palli in J&K becoming carbon neutral through decentralised clean energy projects. 
  • Distributed energy accelerates rural electrification and local resilience, supporting social equity in the energy transition. 
• Digitalisation and Market Innovation: Innovations like the Green Term Ahead Market (GTAM) enhance renewable energy trading efficiency and supply transparency. 
  • AI and IoT-powered analytics help forecast demand, monitor renewable grid integration, and optimise storage, strengthening system reliability. 
  • Battery Energy Storage Systems (BESS) capacity surged to over 7.6 GW awarded in 2025, ensuring smoother renewable integration. 

What are the Major Challenges facing India’s Clean Energy Transition? 

• Land Acquisition and Community Resistance: Land acquisition is a major bottleneck for large-scale renewable projects despite India’s vast land resources. 
  • Complex land ownership, fragmented parcels, and unclear titles create legal and administrative hurdles, particularly in Karnataka, Jharkhand, Odisha, and Assam. 
  • In Assam 2025, a planned 1 GW solar project was cancelled after tribal protests, and the Asian Development Bank withdrew a $434 million loan. 
• Grid Integration and Transmission Infrastructure Deficits: The intermittent nature of solar and wind strains India’s ageing grid. 
  • Up to 50 GW of renewable projects face delays due to transmission bottlenecks and poor evacuation infrastructure. 
  • Right-of-way (RoW) hurdles for transmission lines, coupled with varied state environmental policies, add to project delays and costs. 
  • Battery Energy Storage Systems (BESS) deployment is growing (7.6 GW awarded in the first half of 2025) but still inadequate for grid stability and EV integration. 
  • Rural and semi-urban areas lack EV charging infrastructure, slowing the decarbonization of transport. 
  • Developing cost-effective, efficient, long-duration storage technologies remains a critical R&D challenge. 
• Financial Constraints and Investment Gaps: Achieving India’s renewable targets requires over $400 billion by 2030, yet investment gaps persist. 
  • High upfront capital costs and long gestation periods deter private investment, particularly in green hydrogen, battery manufacturing, and energy recycling. 
  • Also, the poor financial health of state-owned DISCOMs remains a major deterrent. Delayed or default payments to power generators create uncertainty. 
  • Moreover, there is an insufficient volume of Green Bonds and Infrastructure Investment Trusts (InvITs) tailored specifically for clean energy assets. 
• Dependence on Imports of Critical Minerals and Equipment: India’s heavy dependence on imports—nearly 100% for lithium, cobalt, nickel, and over 90% for Rare Earth Elements (REEs)—makes its supply chains highly vulnerable.  
  • Geopolitical tensions, trade restrictions, and global competition, especially from China, which controls 60% of global REE production and 85% of processing capacity, highlight the urgent need to develop a self-reliant supply chain to secure India’s clean energy goals, industrial growth, and national security. 
  • Domestic lithium mining is still exploratory, and India lacks large-scale processing and manufacturing capabilities, increasing vulnerability to global commodity price shocks. 
• Limited Recycling and E-Waste Management Framework: India is projected to become the 4th largest solar panel waste producer by 2050, but recycling infrastructure is almost non-existent. 
  • Current e-waste policies cover battery and panel recycling marginally; comprehensive circular economy measures are needed to recover critical minerals like lithium and cobalt. 
  • Without proper recycling, environmental risks and resource inefficiencies may undermine the sustainability claims of renewable energy. 
• Coal-Dependent Energy Production: India's installed renewable energy capacity exceeds 50%, yet clean energy contributes less than 30% to the actual electricity generation mix. 
  • Coal remains the predominant source, accounting for approximately 70% of electricity generation, despite the growth in renewable energy installations. 
  • Also, coal-dependent states (Jharkhand, Chhattisgarh, Odisha, West Bengal) will face economic disruption as coal demand will decline with time. 
  • Thousands of direct and indirect jobs are at risk, and regional economies dependent on coal royalties require long-term transition plans. 
  • Reskilling, job creation in renewables, and transparent stakeholder engagement are essential to avoid social unrest and poverty traps. 

What are the Key Government Initiatives Driving India’s Renewable Energy Transition?  

• National Solar Mission: Aimed &  achieved 100 GW solar capacity and enable large-scale solar deployment. 
• PM-KUSUM Yojana: Aims to solarise 2 million agricultural pumps and enhance farmer income via solar energy. 
• Solar Parks Program: Aims to develop ultra-mega solar projects with grid connectivity. 
• National Green Hydrogen Mission: Aims to produce 5 million tonnes of green hydrogen annually by 2030. 
• PM Surya Ghar Muft Bijli Yojana: Aims to promote rooftop solar adoption through subsidies and free electricity. 
• The National Bioenergy Program aims to expand bioenergy and waste-to-energy capacity. 
• Wind and Small Hydro Policies aim to strengthen the onshore/offshore wind and small hydropower sectors. 
• International Solar Alliance (ISA) & OSOWOG aim to foster global solar cooperation, investment, and technology sharing. 

What Strategic Interventions can Ensure India's Effective Clean Energy Transition? 

• Strengthen Domestic Critical Mineral Supply and Circular Economy:  India must prioritise securing critical minerals like lithium, cobalt, and rare earth elements, which are foundational for EV batteries, solar panels, and wind turbines. There is a pressing need to : 
  • Develop domestic mining capacity responsibly in mineral-rich regions such as Rajasthan and Jharkhand, ensuring environmental and social safeguards. 
  • Operationalise the National Critical Mineral Mission with focused R&D on mineral processing and battery technologies. 
  • Invest heavily in recycling infrastructure to recover valuable minerals from used batteries and electronic waste, advancing a circular economy and reducing environmental impact. 
• Expand Renewable Capacity and Modernise Grid Infrastructure: India’s renewable energy capacity reached over 225 GW by 2025, but to achieve the 500 GW target by 2030, it must: 
  • Invest strategically in Green Energy Corridors to enable grid stability and efficient renewable power evacuation. 
  • Digitise grid management using AI and smart metering to forecast demand, manage variability, and optimise dispatch of intermittent resources such as solar and wind. 
  • Implement policies like waiving Inter-State Transmission System charges and expanding General Network Access, facilitating smoother market entry and project connectivity. 
• Pioneer a Green Hydrogen Ecosystem: Effectively operationalise the National Green Hydrogen Mission. 
  • Develop strategic hubs at ports like Kandla and Tuticorin for green hydrogen production, storage, and exports. 
  • Promote industry pilots, especially in heavy sectors like steel and fertilisers, to accelerate hydrogen adoption, supported by government incentives and international collaborations. 
• Mobilise Finance and Investment: Leverage green bonds, blended finance, and sovereign climate funds to attract global capital. 
  • Maintain transparent, competitive, and risk-mitigated auction systems to ensure investor confidence. 
  • Enable easier access to low-cost finance for emerging technologies such as battery storage, carbon capture, and green hydrogen, fostering diversification beyond conventional renewables. 
• Promote Decentralised Energy Access and Social Inclusion :Scale rooftop solar deployment through schemes like PM Surya Ghar and farmer-centric solar pumps under PM Kusum, reducing rural energy poverty and transmission losses. 
  • Model and replicate successes such as Palli village in Jammu & Kashmir, India’s first carbon-neutral panchayat powered entirely by solar, demonstrating sustainability at grassroots levels. 
  • Institutionalise community consultation and land acquisition reforms to ensure equitable transition pathways, minimising displacement and resistance. 
  • Promote digitisation of land records and dedicated RoW corridors (“green lanes”) to streamline approvals. 
• Expand Energy Storage and Hybrid Systems: Increase deployment of Battery Energy Storage Systems (BESS) beyond 7.6 GW awarded in 2025 tenders, complemented with pumped hydro and emerging storage technologies. 
  • Incentivise hybrid projects combining solar, wind, and storage to deliver reliable 24/7 power. 
  • Accelerate electric vehicle infrastructure development nationwide, particularly in rural and semi-urban zones, aligning transport decarbonization with energy transition goals. 
• Enhance International Cooperation and Supply Chain Resilience: Strengthen partnerships with mineral-rich democracies like Australia through initiatives such as the  India–Australia Renewable Energy Partnership, which brings together Australia’s resource strength with India’s manufacturing and workforce capabilities. 
  • Foster technology transfers, joint R&D, and coordinated supply chains to reduce overdependence on single countries, notably China, thus mitigating supply disruptions and geopolitical risks. 

Conclusion:  

India’s clean energy transition reflects visionary leadership and strategic foresight, with over 50% of installed power capacity from renewables, achieved five years ahead of target. As Ban Ki-moon, former UN Secretary-General, observed, “Sustainable development is the pathway to the future we want for all.” Strengthening domestic manufacturing, critical mineral security, grid modernisation, green hydrogen, and global cooperation will ensure an inclusive, resilient, and sustainable energy future, driving growth while honouring climate commitments. 

Drishti Mains Question:  

Analyse the major policy measures driving India’s renewable energy expansion. Evaluate their impact on the country’s energy security and achievement of climate goals

 

Frequently Asked Questions (FAQs) 

1. What role do critical minerals play in India’s clean energy transition?
They power EVs, solar panels, wind turbines, and storage, underpinning India’s renewable and net-zero goals.

2. What are the key drivers of India’s renewable energy growth?
Ambitious targets (500 GW by 2030), solar/wind expansion, green hydrogen mission, financial incentives, foreign investments, community solar, and digital innovations.

3. What challenges hinder India’s clean energy transition?
Land disputes, grid bottlenecks, financing gaps, import dependence, weak recycling, coal region impacts, and storage/green hydrogen technology limits.

4. Which government initiatives are driving India’s renewable energy adoption?
National Solar Mission, PM-KUSUM, Solar Parks, Green Hydrogen Mission, PM Surya Ghar, Bioenergy Program, Wind & Small Hydro, ISA & OSOWOG.

5. What strategic interventions can strengthen India’s clean energy transition?
Secure minerals, expand renewables and grid, green hydrogen hubs, mobilize finance, decentralize energy, deploy storage/hybrid systems, enhance cooperation, harmonize policies.

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q. Consider the following statements: (2023) 

Statement-I: India, despite having uranium deposits, depends on coal for most of its electricity production.  

Statement-II: Uranium, enriched to the extent of at least 60%, is required for the production of electricity.  

Which one of the following is correct in respect of the above statements?  

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I  

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I  

(c) Statement-I is correct, but Statement-II is incorrect  

(d) Statement-I is incorrect, but Statement-II is correct 

Ans: (c) 

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Mains 

Q. Describe the benefits of deriving electric energy from sunlight in contrast to conventional energy generation. What are the initiatives offered by our government for this purpose? (2020)

Q. To what factors can the recent dramatic fall in equipment costs and tariff of solar energy be attributed? What implications does the trend have for thermal power producers and related industries? (2015) 

Q. How can India achieve energy independence through clean technology by 2047? How can biotechnology play a crucial role in this endeavour? (2025) 

Q. Explain briefly the ecological and economic benefits of solar energy generation in India with suitable examples. (2025)