India in August crossed the 250 GW-mark of installed capacity of power plants that do not use fossil fuel, helped in large part by the surge in solar energy units. This milestone is the half-way mark in the country’s journey to its target of 500 GW non-fossil energy capacity by 2030.
Not counting nuclear energy and large hydro projects, the country’s renewable energy capacity stands at about 192 GW; including them, the total non-fossil-fuel-based capacity works out to 251,405 MW. The total installed capacity of power stations across India comes to just over 495 GW. Thus, non-fossil fuel capacity works out to 50.7 per cent of total power capacity — exceeding the half-way mark for the first time.
While thermal sources (coal, lignite, gas) still dominate with about 244 GW, capacity in renewables have roared ahead, with solar energy alone accounting for about 123 GW.
Solar installations have mushroomed in the current fiscal year too, adding 17,483 MW in the first five months. Solar power is the “backbone of India’s renewable expansion,” says Ramneek Sehgal, Chairman and Managing Director of Ceigall India, which recently won the 337-MW solar power bid with Maharashtra State Electricity Distribution.
While solar stole the spotlight, the pace of wind energy capacity additions has been slower, tallying only about 2,643 MW in the same period.
The country also has a healthy pipeline of about 142 GW of renewable energy (RE) capacity under construction as of June 2025.
Hybrid projects
Hybrid projects are also giving a leg up to the non-fossil fuel initiative. These solar-wind combinations help negate the ‘intermittency’ that is the nature in pure-solar or only-wind units. These projects currently account for close to 30 GW of under-construction capacity, according to the Renewable Project Monitoring Division of the Central Electricity Authority.
The simple complementarity of solar (peaking midday) and wind (often stronger at night) means that hybrid projects smooth out the supply curve. This pairing increases plant utilisation, with capacity factors potentially ‘approaching or exceeding 40 per cent, compared with 18-28 per cent for standalone systems’.
The other encouraging sign in addressing intermittency is the progress seen in energy storage solutions. Pranaav Gupta, Senior Associate, at Economic Laws Practice (ELP) points out that in August this year, the Ministry of Power exempted ‘off-stream closed-loop’ pumped storage schemes from the requirement of obtaining consent from the CEA, thus eliminating an element of ‘strict government regulation’.
Complementing the non-fossil fuel expansion is nuclear energy, which now holds 8,780 MW of installed capacity. But nuclear plants face operational challenges, such as the need for complex maintenance cycles and occasional outages — like the recent temporary removal of 100 MW capacity due to long-term outage, according to the National Power Portal.
However, the sector provides a stable power supply. India is targeting 100 GW of nuclear capacity by 2047, for which the Centre has allocated ₹20,000 crore under Nuclear Energy Mission to develop Small Modular Reactors.
Indian scenario
But the road ahead is not without challenges, warns Sehgal. He predicts that close to a quarter of the awarded renewable projects are likely to face slippage past the 2030 deadline. Here’s why:
Delay in the setting up of transmission infrastructure are a critical roadblock, with over 50 GW of new renewable capacity currently stranded because the transmission network expansion cannot keep pace. In FY25, only 8,830 circuit km (ckm) of new lines were commissioned, significantly short of the 15,253 ckm target, he points out. Delays dampen investor sentiment.
There are large systemic reasons for delays in renewable energy projects, says ELP’s Gupta. “But there was a recent instance when the commercial operation date of the solar power plant facility being delayed as the Model Code of Conduct was in force. While the law clearly provides that developmental activities cannot be postponed during the time the MCC is in place, non-availability of officers for signing off on the go-live date,” was not anticipated.
Solar and wind energy units require large tracts of real estate. Land acquisition is a hurdle here, complicated by fragmentation, legal disputes, and community opposition, particularly for large solar parks and transmission corridors.
He points out that the uncertainty around power purchase agreements (PPAs) is also a drag on expansion. “A large volume of awarded RE projects — over 40 GW — lack signed PPAs, potentially requiring rebidding due to missing supply deals.” He says meeting the 500 GW target by 2030 now depends not on policy intent but on execution reform and risk mitigation across land, grid, and policy domains.
Published on September 29, 2025