- India added a record 22GW of renewable capacity in H1 2025, led by 18.4GW solar and driven by incentives like ISTS charge waivers.
- Despite progress, coal still accounts for 75% of electricity generation, and there are plans for 80GW more thermal projects.
India installed a record 22 gigawatts (GW) of renewable energy capacity in the first half of 2025, a 57% increase from the 14.2GW added during the same period last year.
The new capacity includes 18.4GW of solar, 3.5GW of wind, and 250 megawatts (MW) of bioenergy, marking India’s largest six-month addition.
Rystad said developers rushed to use the government’s Interstate Transmission System (ISTS) charge waiver. The waiver currently provides a 25% discount on transmission fees but will phase out by June 2028, increasing pressure to act quickly.
India’s total installed clean energy capacity, including large hydropower, is now 234GW. The country is gradually moving toward sourcing 50% of total capacity from non-fossil sources.
Despite the rapid growth, fossil fuels still dominate electricity generation. According to Rystad, coal, oil, and gas accounted for about 75% of electricity produced in the first half of the year.
India also expanded its nuclear capacity. The government commissioned a 700MW unit (Unit 7) at the Rajasthan Atomic Power Project, connecting it to the northern grid. Authorities also approved the country’s first small modular reactor (SMR), which will be built in Bihar.
“India installed 22GW of renewable energy capacity in the first half of 2025, a new record,” said Sushma Jaganath, Rystad Energy’s vice president for renewables and power research. “However, the country is still banking heavily on coal to meet growing power demand, with plans to install an additional 80GW of new thermal projects.”
Jaganath added that India is not undergoing a complete energy transition but is expanding fossil and renewable power sources to secure supply. She warned that coal will likely remain central to electrification without urgent investment in grid upgrades and energy storage.
Battery energy storage systems (BESS) also saw a significant boost. Authorities awarded 5.4GW of collocated solar-plus-storage projects and 2.2GW of standalone BESS, India’s largest-ever storage allocation.