India’s Renewable Energy Revolution | 06 Jun 2025

Source: HT  

Why in News? 

India has emerged as a global clean energy leader, adding a record 29 GW of renewable energy in the year 2024 alone.  

• With 232 GW installed capacity and 176 GW under construction, India’s energy transition is driving global sustainability efforts, powered by bold reforms and visionary leadership. 

What Is the Current State of Renewable Energy Development in India? 

• Status: India ranks 3rd in solar, 4th in wind, and 4th in total renewable energy capacity globally. Solar capacity surged from 2.63 GW in 2014 to 108 GW in 2025 (a 41-fold increase), while wind capacity has crossed 51 GW. 
  • It aims to achieve 500 GW of non-fossil capacity by 2030 and 1,800 GW by 2047.  
• Reforms Undertaken:  
  • Market-Driven Bidding: India replaced feed-in tariffs with transparent bidding, leading to a sharp decline in solar tariffs from Rs 10.95/unit in 2010 to Rs 1.99/unit in 2021. 
  • Waiver of ISTS Charges: Waiver of inter-state transmission system (ISTS) charges has removed geographical barriers, enabling nationwide renewable energy flow. 
  • Flagship Programs and Initiatives:  
    • Due to PLI Scheme for Solar Manufacturing, India's solar module manufacturing capacity nearly doubled from 38 GW in March 2024 to 74 GW in March 2025.     
    • PM Surya Ghar: Muft Bijli Yojana targets 30 GW decentralized capacity across 1 crore households, with more than 10 lakh houses already onboarded.  
    • Under PM-KUSUM, Farmers get up to 60% subsidy on solar pumps under PM Kusum Yojana, ensuring daytime power and extra income.    
    • The National Green Hydrogen Mission (NGHM) aims to produce 5 MMT of green hydrogen annually by 2030, backed by investments in Green Energy Corridors and a robust 2030 transmission roadmap to ensure efficient grid integration. 
    • Under the Ethanol Blended Petrol (EBP) Programme, ethanol blending in petrol rose from 1.5% (2013) to 15% (2024).  
      • This saved Rs 1.26 lakh crore in foreign exchange. 
    • The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative has commissioned over 100 compressed biogas (CBG) plants and aims for a 5% CBG blending mandate by 2028. 
• Emerging Energy Frontiers: Offshore wind initiatives plan 37 GW of tenders by 2030, supported by viability gap funding, with pilot projects underway in Gujarat and Tamil Nadu. 
  • Hybrid and round-the-clock power policy promotes wind-solar hybrids and firm & dispatchable renewable energy (FDRE) to develop 24/7 clean energy solutions. 
• Investment and Global Leadership: The International Solar Alliance, launched by India, unites over 100 countries under the vision of One Sun, One World, One Grid. 
  • India’s renewable energy sector accounted for nearly 8% of total foreign direct investment inflows in the financial year 2024-25, up from about 1% in FY21.      
  • At RE-Invest 2024, global investors committed Rs 32.45 lakh crore by 2030 to India’s clean energy future. 

What are the Key Issues Associated with India's Renewable Energy Sector? 

• Roadblocks in Shifting from Coal to Renewables: India’s transition from coal to renewable energy faces major hurdles, including heavy dependence on coal for employment and local economies in states like Jharkhand and Chhattisgarh, and an infrastructure tailored to coal-based power.  
  • Further, policy inconsistency, such as continued coal plant approvals, undermines investor confidence in renewables. 
• Financing Gaps: To build its targeted 500 GW of renewable energy capacity by 2030, India needs Rs 2 trillion in funding annually—that is half its entire 2023-24 Union budget. 
  • Additionally, the high capital costs for renewable energy infrastructure, coupled with the relatively slow return on investment, create a barrier for many investors. 
• Grid Integration & Storage Challenges: The intermittent nature of renewable energy, especially solar and wind, challenges grid stability, demanding robust energy storage and improved infrastructure.  
  • As of March 2024, the cumulative installed energy storage capacity stood at 219.1 MWh versus a requirement of 411 gigawatt-hours (GWh) of energy storage capacity by 2032, while renewable-rich states like Maharashtra and Rajasthan face high AT&C losses of 18.9% and 18%, respectively. 
• Supply Chain Vulnerabilities: China remains India's largest solar cell supplier, accounting for nearly 56% share in FY2024, which also dominates wind turbine supplies. 
  • India is heavily dependent on China for critical minerals, importing majority of its lithium and cobalt requirement, with over 70% of lithium sourced from China, which are essential for manufacturing renewable energy components. 
• Land & Environmental Constraints: The rising demand for solar and wind farms brings significant land challenges, with solar power needing 4–5 acres/MW and wind energy requiring 2–40 acres/MW, based on location and infrastructure. 
  • The need for large tracts of land often leads to competition with agricultural use, urban development, and natural habitats, causing potential conflicts with local communities and ecosystems. 
  • E.g., the Sillahalla Hydro Project (Tamil Nadu) highlights concerns over biodiversity loss and resettlement, underscoring the challenge of balancing clean energy goals with social and environmental sustainability.  
• E-waste and End-of-Life Management Issues: The growing volume of e-waste, particularly from solar panels, poses a significant challenge for sustainable development, as improper disposal can release toxic materials like cadmium and lead into the environment. 
  • As per the International Renewable Energy Agency, India may become the 4th-largest producer of solar panel waste by 2050.  
  • There is no comprehensive solar recycling policy, and the lack of large-scale recycling facilities poses serious environmental risks.

How can India Accelerate Renewable Energy Adoption to Meet Rising Energy Demand?

• Optimize Land and Water Resources: Leverage reservoirs, lakes, and coastal areas to implement the floating solar revolution by installing floating solar panels (e.g., Omkareshwar Floating Solar Park in MP), which conserve land, reduce water evaporation, and improve energy efficiency.  
  • Simultaneously, promote land leasing and agrivoltaics to enable dual land use for clean energy generation and agriculture through long-term solar farming leases. 
• Develop Renewable Energy Clusters: Establish Renewable Energy Special Economic Zones (RE-SEZs) with streamlined clearances, fiscal incentives, and integrated value chains from R&D to manufacturing to boost clean energy growth.  
  • Promote Renewable Energy Parks on degraded or non-agricultural land with integrated transmission access to optimize land use without impacting agriculture. 
• Leverage Digital and Emerging Technologies: Adopt blockchain-enabled peer-to-peer renewable energy trading to decentralize markets and empower prosumers.  
  • Concurrently, invest in smart grids, pumped hydro, and battery storage to effectively manage the variability of renewable energy supply. 
• Expand Renewable Infrastructure: India can boost renewable energy by installing Vertical Axis Wind Turbines (VAWTs) on rooftops to capture urban wind, alongside decentralized solutions like rooftop solar, microgrids, and solar irrigation pumps.  
  • These systems enhance rural electrification, reduce carbon footprints, and provide reliable energy to off-grid areas. 
• Promote Waste-to-Energy and Bioenergy: Develop Circular Waste-to-Energy Parks (e.g., Jamnagar Waste-to-Energy Park) using anaerobic digestion, gasification, and pyrolysis to convert waste into energy and valuable byproducts. 
  • Scale up biofuels and compressed biogas (CBG) through ethanol blending and SATAT to boost rural income and diversify energy sources. 
• Expand Global Engagement:  India can tap into global financing tools like the Loss and Damage Fund and Green Climate Fund to secure financial resources for large-scale renewable projects. 
  • Strengthen technology transfer through partnerships with G20, International Solar Alliance (ISA), and other international institutions to boost renewable energy deployment and technology adoption. 
  • India can collaborate with international bodies like IRENA to establish global standards for renewable energy, including shared frameworks for financing, technology adoption, and capacity building. 

Conclusion 

India's renewable energy push positions it as a global clean energy leader. Despite challenges like financing gaps and grid integration, innovations such as floating solar, RE-SEZs, and green hydrogen can drive progress toward the 500 GW target by 2030. This transition supports SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 9 (Industry, Innovation, and Infrastructure), ensuring energy security, promoting sustainable growth, and advancing climate action.