India’s energy transition is entering a decisive phase, driven by strong policy direction, rapid capacity expansion, and a clear focus on Aatmanirbharta (self-reliance), Union Minister of State for Power and Renewable Energy Shripad Naik has said.
Highlighting India’s progress in the power sector, he noted that the country is not only expanding its clean energy capacity at record speed but also strengthening its position as a global leader in renewable energy transformation.
Rapid Growth in Clean Energy Capacity
India’s installed power generation capacity has more than doubled since 2014, with the share of non-fossil fuel sources rising to over 51% by October 2025. This milestone has enabled India to achieve its Nationally Determined Contribution (NDC) target of 50% non-fossil capacity nearly five years ahead of schedule.
In FY 2025–26 alone, the country added a record 47.3 GW of non-fossil energy capacity, reflecting strong momentum in solar, wind, and other renewable sources.
Solar energy, in particular, has seen exponential growth—from just 2.8 GW in 2014 to more than 140 GW by early 2026—making it one of the fastest-growing segments in India’s energy mix.
Strengthening Energy Independence
A key focus of India’s strategy is reducing dependence on imported fossil fuels through large-scale electrification and clean energy adoption. The government is pushing electrification across mobility, agriculture, and industry to reduce oil imports and improve long-term energy security.
Officials estimate that these combined efforts could save over ₹1 lakh crore in fossil fuel imports by the end of the decade.
India is also targeting 30% electric vehicle penetration by 2030, signalling a strong shift towards cleaner transport systems.
Boost to Domestic Manufacturing
The push for clean energy is being matched with efforts to strengthen domestic manufacturing capabilities.
Under the Approved List of Models and Manufacturers (ALMM) framework, India has developed:
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Around 172 GW of solar module manufacturing capacity
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Approximately 27 GW of solar cell production capacity
This expansion is aimed at reducing import dependency and building a strong domestic renewable energy supply chain.
Social Inclusion Through Energy Access
Alongside industrial growth, the transition is also focusing on inclusive development. Key government programmes are improving energy access for rural and underserved communities.
The Revamped Distribution Sector Scheme (RDSS) is supporting electrification of 13.6 lakh vulnerable tribal households, strengthening rural infrastructure and energy access.
Similarly, the PM Surya Ghar: Muft Bijli Yojana aims to bring rooftop solar power to 1 crore households by 2027. So far, over 32 lakh households have already adopted rooftop solar systems under the scheme.
The PM-KUSUM scheme is also transforming agriculture by promoting solar-powered irrigation, benefiting millions of farmers while reducing diesel dependency.
Green Hydrogen and Future Energy Vision
India is also positioning itself as a global leader in the emerging green hydrogen economy. The National Green Hydrogen Mission, with an outlay of ₹19,744 crore, aims to achieve:
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5 million metric tonnes of annual production by 2030
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125 GW of dedicated renewable energy capacity
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Creation of nearly 6 lakh jobs
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Capture of around 10% of global green hydrogen demand
This marks a major step toward building a future-ready clean energy ecosystem.
From Capacity Building to System Strength
Experts note that India’s energy policy is now shifting from rapid capacity expansion to strengthening grid systems, improving integration, and enabling market reforms.
New regulatory mechanisms such as dynamic solar and non-solar pricing windows and virtual power purchase agreements are being introduced to reduce congestion and improve efficiency in the power grid.
Conclusion
India’s energy transition reflects a combination of scale, speed, and strategic planning. With record renewable expansion, strong manufacturing growth, and increasing focus on self-reliance, the country is steadily shaping its role as a global clean energy leader.
As policy evolves from capacity creation to system optimisation, India’s power sector is expected to become more resilient, efficient, and globally influential in the years ahead.
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