In a historic achievement for its clean energy ambitions, India’s renewable energy installed capacity surpassed 200 gigawatts (GW) in 2025, officially overtaking coal as the country’s largest source of power generation. This momentous shift marks a major milestone in India’s energy transition and climate commitments.

According to the Ministry of New and Renewable Energy (MNRE), the total renewable portfolio now comprises 105 GW of solar, 70 GW of wind, 18 GW of hydro, and 7 GW of bioenergy. Coal-fired power, which once accounted for nearly 60% of India’s electricity mix, has dropped to less than 38% for the first time in decades.

The transition is largely driven by falling costs, supportive policies, and the massive scaling of solar parks, wind corridors, and hybrid energy projects across the country.

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Policy, Investment, and Innovation

India’s rise in renewables has been fueled by the National Solar Mission, Green Energy Corridors, and the Production Linked Incentive (PLI) scheme for solar manufacturing. In 2025, India also launched Renew India 2.0, a ₹25,000 crore initiative to accelerate adoption of floating solar, offshore wind, and green hydrogen-integrated grids.

The International Solar Alliance (ISA), spearheaded by India and now joined by over 110 countries, has helped streamline global investments. India attracted over $18 billion in renewable energy FDI in 2024–25 alone.

Domestic companies like ReNew Power, Adani Green, Tata Power, and JSW Energy led utility-scale projects, while new startups focused on rooftop solar, peer-to-peer energy trading, and rural microgrids.

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Grid Expansion and Storage Revolution

The central government’s commitment to grid modernization played a crucial role. India now operates one of the world’s largest synchronized renewable grids, aided by AI-based forecasting systems, real-time energy trading, and smart substations.

In 2025, India commissioned its first giga-scale battery storage park in Gujarat, capable of storing 5 GWh of energy, helping to smooth out solar-wind intermittency. States like Tamil Nadu, Maharashtra, and Rajasthan are building additional pumped hydro and lithium-ion facilities.

The Green Open Access Rules introduced in 2023 now allow consumers to buy clean power directly from generators, opening up new markets for industrial decarbonization.

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Impact on Climate and Economy

This energy shift is yielding clear climate dividends. India’s per capita carbon emissions have dropped by 11% since 2020, while the renewable sector now employs over 1.3 million people, across engineering, installation, maintenance, and software roles.

Electricity from renewables is now 25–40% cheaper than fossil-based sources, reducing the average cost of power procurement for states and industries.

Moreover, rural households are benefitting from solar-powered irrigation, cold storage, and health clinics, enhancing both incomes and resilience to climate shocks.

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The Road Ahead: 500 GW Target by 2030

While the 200 GW milestone is significant, India remains committed to its 2030 goal of 500 GW non-fossil capacity. Challenges remain in terms of land acquisition, local opposition, storage costs, and transmission bottlenecks.

The government is now focusing on offshore wind projects, solar-wind hybrid zones, and expanding green hydrogen electrolyzers, which will power heavy industries and transport.

India is also lobbying for a global clean energy fund under the UNFCCC to help developing nations invest in renewables without compromising growth.

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Conclusion

India’s achievement of 200 GW in renewable energy in 2025 marks a turning point in its energy history. As coal’s dominance fades, India is proving that clean, affordable, and reliable energy is not just a vision—it is the new reality.