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India has crossed a major milestone in its renewable energy journey, with its installed capacity surpassing 200 gigawatts (GW) and annual investments projected to double to over $32 billion by 2025.
According to a report by Press Trust of India (PTI), this rapid growth underscores India’s rise as a clean energy superpower as it targets 500 GW of renewable energy capacity by 2030.
India Leads Global Renewable Capacity Growth
India is expected to achieve the fastest growth in renewable capacity additions among major economies, including China, according to the International Energy Agency (IEA). The IEA projects India’s annual capacity additions to grow from 15 GW in 2023 to 62 GW by 2030.
Union Minister for New and Renewable Energy Pralhad Joshi told PTI that 2024 has been a record-breaking year for the renewable energy (RE) sector. “We have installed a total capacity addition of 24.72 GW RE in the country during the last 11 months of 2024 (from January 1 to November 30), compared to 11.83 GW during the same period last year,” he said.
By the end of 2024, India’s installed renewable energy capacity had reached 205 GW. Solar power dominated capacity additions in 2024, contributing 20.85 GW of the total 24.72 GW, followed by 3.22 GW of wind power.
Massive Investments on the Horizon
India’s renewable energy expansion plans will require significant investments. According to PTI, the government estimates that adding 50 GW of RE capacity annually—necessary to achieve the 2030 target—will entail investments of ₹2.75 lakh crore ($32.35 billion). The domestic renewable energy manufacturing ecosystem is also scaling up, with increased production of solar PV panels and wind turbines. According to the report, a record ₹32.45 lakh crore of investments were pledged for the RE sector in 2024 alone.
Government Initiatives and Upcoming Challenges
The PM-Surya Ghar Muft Bijli Yojana, launched to provide rooftop solar installations and free electricity up to 300 units for 1 crore households, has seen over 1.5 crore registrations so far, as per the report. As of now, 6.85 lakh installations have been completed under the scheme. However, challenges remain for the sector.
Joshi told PTI that the government is working on policies to reduce the cost of green hydrogen, standardize production and storage, and identify demand for domestic and international markets. “The development of new standards, along with encouraging the use of hydrogen in hard-to-abate sectors like steel and transport, will be crucial in 2025,” Joshi said.
Focus on Green Hydrogen and Policy Reforms
PTI reported that India plans to award 7.80 lakh metric tons per annum (MTPA) of green hydrogen and derivative production capacity in 2025. A Green Hydrogen Certification Scheme is also in the pipeline, with the draft already published for stakeholder comments.
Experts emphasized the need for policy reforms to ensure the sector’s growth. Devansh Jain, Executive Director of INOXGFL Group, told the agency, “India needs to expedite project awarding, PPA/PSA signing, and develop dedicated low-cost financing mechanisms to fund renewable energy projects.”
Sandeep Agarwal, Founder of Greenzo Energy India, stressed the importance of public-private partnerships, innovation, and actionable strategies for green hydrogen development.
Transmission Infrastructure: A Major Bottleneck
One of the key challenges highlighted in the report is the lack of sufficient transmission infrastructure to evacuate renewable energy. Vineet Mittal, Chairman of the CII Task Force on Green Hydrogen, said, “The sector urgently needs a dedicated inter-state transmission system network to evacuate 100 GW of power from renewable-rich states like Rajasthan, Madhya Pradesh, and Gujarat in the next two years.”
PTI also reported that emerging technologies such as offshore wind, floating solar, and advanced battery storage solutions are being explored to diversify India’s renewable energy portfolio.
The Road Ahead
India’s renewable energy ambitions demand a robust policy framework to reduce costs, boost domestic manufacturing, and scale up infrastructure. With the government and private sector working in tandem, India is poised to maintain its leadership in the global energy transition.
As Atanu Mukherjee, CEO of Dastur Energy, told PTI, “India’s renewable energy ambitions require policies that lower costs, enhance reliability, and build domestic capabilities.”
