BENGALURU, India — As one of the world’s leading producers of carbon emissions, India is simultaneously championing a substantial shift towards renewable energy sources like solar and wind. Although India primarily generates electricity from coal, its reliance on this pollutant energy source is declining. Roughly 11 years ago, coal constituted about 60% of India’s installed power capacity, but now it accounts for less than 50%, according to the nation’s power ministry.
In an impressive stride towards sustainability, India achieved a record addition of 30 gigawatts of renewable energy in the fiscal year from April 2024 to April of the following year. This capacity is enough to supply power to nearly 18 million homes in India. The potential for India to transition away from coal and other fossil fuels, such as gasoline and oil, amid rising energy demands from a burgeoning middle class, could significantly influence global climate change mitigation efforts.
Renewable energy is emerging as the most financially viable option. Solar energy costs have plummeted, making it half as expensive as power derived from new coal plants. Factors contributing to this decline include the affordability of solar components and India’s abundance of sunny days. Over the past decade, the installed solar power capacity has grown 30-fold. Ruchita Shah, an energy analyst at the climate think-tank Ember, remarked, “Solar power is the cheapest it’s ever been,” highlighting that cost reductions in battery storage will ensure renewable energy’s permanence even during non-ideal weather conditions.
India is on track to complete nearly 170 gigawatts of renewable energy projects in the coming years. Energy expert Raghav Pachouri of the Vasudha Foundation confidently stated, “I have no doubt that India will reach its target of 500 gigawatts by 2030.”
Government initiatives and private sector investments are critical in advancing renewable energy growth. India aims to expand non-fossil fuel power capacity by 50 gigawatts annually for the next five years, aiming for clean energy to contribute half of the country’s energy mix by the end of the decade. The transition is supported by a 2022 law that reduces electricity costs for businesses opting for clean energy, recommendations for increased renewable energy procurement by state utilities, and a 2023 government plan committing $452 million to renewable investments. With $81 billion invested in the renewable sector over the last ten years, India has emerged as the fourth-largest clean power producer globally.
Despite this rapid development, challenges remain. While non-fossil sources now make up 45% of India’s installed capacity, they only accounted for 24% of electricity generation last year, with coal still leading at 75%. While the share of energy from solar, wind, small hydro, and biomass has doubled since 2014, reaching 12%, it remains below projected expectations. The Centre for Science and Environment, a New Delhi-based think-tank, emphasized the need for optimized and effective integration of renewable energy into the grid.
India finds itself at a pivotal juncture in energy policy. A report by clean energy think-tank RMI indicates electricity demand will triple by 2050, driven by increased use of electric vehicles, air conditioners, and industrial growth. Land acquisition for renewable projects remains a hurdle, as does the need to develop a robust electricity transmission system and energy storage infrastructure.
According to Deepak Thakur, CEO of Mumbai-based renewable energy company Mahindra Susten, India is poised to become the world’s third-largest economy, necessitating a shift to renewable energy to support this growth. “There is no option for us because fossil fuels can’t keep pace,” he added.