New Delhi (ABC Live): India has entered a new phase in its energy evolution. For the first time, clean energy sources—including solar, wind, hydro, biomass, and nuclear—collectively exceed fossil fuel capacity. As of 31 October 2025, non-fossil sources account for 51.37% of India’s installed electricity capacity, while fossil fuels contribute 48.6%.

Importantly, this major shift occurred five years ahead of India’s 2030 Nationally Determined Contributions (NDC) target. This early achievement demonstrates both the scale and the speed of India’s energy transition.

This moment did not arrive suddenly. Instead, it resulted from coordinated policy measures, long-term planning, significant public and private investment, and several major structural reforms. Consequently, India’s energy mix has shifted from coal dominance to clean-energy leadership at a pace unmatched by most major economies.

1. Renewable Energy Grew Faster Than Any Other Source

Renewable energy has been the backbone of India’s clean-energy shift. In particular, solar and wind power expanded at a record pace across the last decade.

Renewable Energy Snapshot (31.10.2025)

• Total RE: 2,50,643 MW
• Solar: 1,29,924 MW
• Wind: 53,600 MW
• Hydro + Pumped Storage: 50,348 MW
• Biomass/Waste-to-Energy: 11,613 MW

Moreover, flagship programmes such as Solar Parks, PM Surya Ghar, PM-KUSUM, and the annual 50 GW renewable bidding trajectory accelerated project execution. Additionally, 100% FDI under the automatic route and ISTS charge waivers attracted unprecedented private investment.

As a result, clean energy capacity grew far faster than coal-based power over the same period.

2. Transmission Upgrades Made Large-Scale RE Possible

Until a decade ago, renewable projects often stalled due to grid bottlenecks. However, this limitation has changed significantly through systematic transmission expansion.

Major Transmission Reforms

• Green Energy Corridor (GEC) with dedicated RE evacuation lines
• National Transmission Plan (2032) aligning RE targets with future grid demand
• ISTS charges waiver, cutting the cost of renewable power transfer
• New substations enabling RE evacuation in solar and wind-intensive states

Consequently, renewable power can now move seamlessly across regions. Furthermore, overall grid reliability improved while the cost of clean electricity decreased.

3. Market Reforms Strongly Favoured Clean Energy

India complemented its grid expansion with major market reforms designed to promote clean power.

Key Market Measures

• Standard Bidding Guidelines (SBG) for solar, wind, hybrid, and FDRE projects
• GTAM (Green Term Ahead Market) enables spot trading of RE
• Renewable Consumption Obligation (RCO) mandating industrial clean-energy use
• Penalty-linked compliance to enforce obligations

Together, these measures created predictable demand and reduced pricing risks for developers. Therefore, clean energy became increasingly competitive compared to fossil sources.

4. PLI Scheme Expanded Domestic Solar Manufacturing

The Production Linked Incentive (PLI) scheme transformed India from a solar-equipment importer into a growing manufacturing hub.

For example, gigawatt-scale module, cell, and wafer facilities are now operational or under construction. Additionally, domestic component availability reduced project delays and stabilized equipment costs.

Ultimately, the PLI scheme helped solar emerge as India’s fastest-growing clean-energy segment.

5. Energy Storage Made Clean Power Reliable

Storage technologies were essential for converting variable renewables into dependable power.

Battery Energy Storage (BESS)

• 13.22 GWh under the 2023 VGF scheme
• 30 GWh under the 2025 VGF expansion
• Total: 43.22 GWh under implementation

Pumped Storage Projects (PSP)

• 10 PSPs
• 11,870 MW under construction

Hybrid and FDRE Projects

These models combine solar + wind + storage to deliver round-the-clock renewable electricity.

Consequently, clean power has become a practical and reliable substitute for coal-based baseload supply.

6. Nuclear Energy Boosted the Non-Fossil Share

Nuclear energy continues to play a crucial role due to its low emissions and 24×7 reliability.

Key Nuclear Initiatives

• 100 GW nuclear target by 2047
• ₹20,000 crore SMR Mission
• Five indigenous SMRs by 2033
• Amendments enabling private participation
• Bharat Small Reactors for industrial hubs
• NPCIL–NTPC JV (ASHVINI) for rapid deployment

Notably, nuclear energy helps maintain grid stability when renewable generation fluctuates.

7. Green Hydrogen Will Drive the Next Clean-Energy Wave

The National Green Hydrogen Mission is set to create a new layer of long-term demand for clean power.

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2030 Targets

• 5 MMT green hydrogen
• 125 GW RE dedicated to hydrogen
• Industrial use across steel, fertilisers, refining, and mobility

Therefore, the mission ensures strong growth in clean energy consumption through the next decade.

8. Fossil Fuel Additions Slowed Down Significantly

Coal remains important for grid stability. However, its expansion has slowed sharply.

Reasons for the slowdown

• Strict pollution norms
• Rising coal transportation costs
• Water scarcity at thermal sites
• Attractive renewable-storage hybrids
• Investor preference for cleaner technologies

In contrast, renewable installations surged, enabling clean energy to surpass fossil sources. Overall, India’s clean-energy majority reflects both rapid RE growth and slower fossil expansion.

Why This Shift Matters

A. India achieved its 2030 target early

This enhances India’s global climate leadership position.

B. Clean energy strengthens energy security

Dependence on imported coal and LNG declines.

C. Economic and industrial benefits increase

Jobs and investments rise in solar, storage, hydrogen, and nuclear sectors.

D. Supports India’s Net-Zero 2070 vision

A clean-energy majority is essential for long-term decarbonisation.

Eight Reasons India Generates More Clean Energy Than Fossil Fuels

1. Rapid solar and wind expansion
2. Modernised national transmission grid
3. Clean-energy-focused market reforms
4. Domestic manufacturing via PLI
5. Battery + pumped storage scaling
6. Nuclear energy revival
7. Green hydrogen demand creation
8. Slower fossil fuel additions

Together, these eight forces reshaped India’s power sector far faster than most analysts predicted.

India’s clean-energy majority marks a decisive shift in its power landscape, achieved five years ahead of its 2030 target and detailed in the Government of India’s official release (PIB: https://pib.gov.in/PressReleasePage.aspx?PRID=2197163). Driven by sustained policy reforms, rapid renewable expansion, strong transmission upgrades, and emerging technologies like storage, nuclear, and green hydrogen, this transition strengthens energy security, reduces import dependence, and keeps India firmly on track toward its Net-Zero 2070 vision—proving that clean growth and economic expansion can advance together.

Sources

1. Press Information Bureau (PIB), Government of India
   “India’s Power Capacity Hits 5.05 Lakh MW; Non-Fossil Fuel Sources Share Exceeds Fossil Fuel Sources”
   https://pib.gov.in/PressReleasePage.aspx?PRID=2197163
2. Ministry of Power, Government of India
   National Transmission Plan and Renewable Energy Integration Documents.
3. Ministry of New & Renewable Energy (MNRE)
   Annual Renewable Energy Statistics, ISTS Waiver Notifications, and 50 GW Annual Bidding Trajectory.
4. Central Electricity Authority (CEA)
   “Installed Capacity Reports (October 2025)” and “National Electricity Plan.”
5. ABC Live Research Desk
   “India Green Hydrogen Mission Review”
   https://abclive.in/2025/08/05/india-green-hydrogen-mission-review/