India Achieves 50% Non-Fossil Power Capacity Milestone, Accelerates Drive Toward Net Zero

India has achieved a major clean energy milestone, with non-fossil fuel sources now accounting for over 50 percent of its total installed electricity generation capacity. The country’s total installed capacity has reached 5,05,023 MW, comprising 2,45,600 MW from fossil-fuel sources and 2,59,423 MW from non-fossil fuel sources - including 2,50,643 MW from renewable energy.

This achievement comes over five years ahead of the 2030 target under India’s Nationally Determined Contributions (NDCs) toward the Paris Agreement. It underscores the country’s rapid shift toward sustainable energy and its long-term commitment to achieving net-zero emissions by 2070.

Policy Push for Renewables

To accelerate renewable capacity expansion and strengthen the national grid, the Indian government has implemented a robust policy framework headlined by significant financial and regulatory incentives. 

A key measure includes the waiver of Inter-State Transmission System (ISTS) charges for solar and wind projects commissioned by June 2025, with extended waivers applicable to green hydrogen and offshore wind projects until 2030 and 2032, respectively. Complementing these cost reductions, the government has sought to attract global capital by allowing 100 percent Foreign Direct Investment (FDI) in the renewable sector under the automatic route. Furthermore, to streamline procurement, Standard Bidding Guidelines have been introduced for tariff-based competitive bidding across solar, wind, hybrid, and firm renewable energy sectors.

To support the physical integration of this energy, the government has committed to an ambitious procurement and infrastructure roadmap. Renewable Energy Implementing Agencies (REIAs) have been assigned an annual bidding trajectory of 50 GW from FY 2023–24 through FY 2027–28 to ensure consistent market growth. This generation capacity is being supported by the Green Energy Corridor Scheme, which funds the creation of new transmission lines and substations essential for power evacuation. Additionally, the Solar Parks and Ultra Mega Solar Projects Scheme addresses logistical challenges by providing dedicated land and transmission infrastructure for large-scale developments.

Beyond utility-scale projects, the administration is driving growth through consumer-centric initiatives and domestic manufacturing support. Programs such as PM-KUSUM and the PM Surya Ghar Muft Bijli Yojana have played a pivotal role in advancing distributed solar power adoption among farmers and households. Simultaneously, to reduce import reliance, the National Programme on High Efficiency Solar PV Modules and the Production Linked Incentive (PLI) scheme are actively encouraging Gigawatt-scale domestic manufacturing, ensuring that India’s transition to green energy is supported by a strong local supply chain.

Strengthening the Clean Energy Backbone

To bolster grid reliability and accelerate the decarbonization of the power sector, the Ministry of Power has sanctioned a suite of complementary schemes focused on storage and new energy frontiers. 

A significant portion of this initiative targets energy storage infrastructure, specifically through the implementation of two Viability Gap Funding (VGF) schemes for Battery Energy Storage Systems (BESS), which aim to create 43.22 GWh of capacity with INR 9,160 crore in budgetary support. Parallel to this, grid stability is being reinforced through the construction of ten Pumped Storage Projects (PSPs) with a combined capacity of 11,870 MW.

Expanding the renewable energy basket, the government is actively supporting the offshore wind sector through VGF for initial projects totalling 1 GW. Furthermore, the National Green Hydrogen Mission has set an ambitious trajectory to establish an annual green hydrogen production capacity of at least 5 MMT by 2030. This mission, which is critical for decarbonising hard-to-abate sectors like industry and transportation, will be underpinned by the development of 125 GW of associated renewable energy capacity.