India Achieves 50% Clean Energy Capacity Target 5 Years Ahead of Schedule
India has successfully met its ambitious climate target of generating 50% of its total installed electricity capacity from non-fossil fuel sources, achieving the goal in 2025, five years ahead of its 2030 deadline. As of June 30, 2025, India's installed capacity from renewables, large hydro, and nuclear energy reached 242.8 GW out of a total of 484.8 GW. This significant environmental milestone, announced by the Prime Minister, showcases the nation's rapid progress in transitioning towards cleaner energy sources.
Unpacked:
Key factors include strong government policies, rapid expansion of solar and wind capacity, financial incentives like transmission charge waivers, and record-breaking annual renewable installations. Developers accelerated projects to benefit from government schemes and support, while large hydro and nuclear projects also contributed to the total non-fossil capacity.
Although non-fossil sources make up 50% of installed capacity, fossil fuels still account for about 75% of actual electricity generated in the first half of 2025. This is due to higher utilization rates of coal, oil, and gas plants compared to renewables, which face intermittency and grid integration challenges.
Major challenges include financial instability of distribution companies (DISCOMs), delays in power sale agreements, outdated grid infrastructure, reliance on imported critical minerals, and the need for further grid modernization and storage solutions to manage renewable intermittency.
India’s early achievement sets a precedent for emerging economies, demonstrating that rapid renewable expansion is possible at scale. Its progress is closely watched globally, as India is the world’s third-largest emitter, and its transition strategies influence international climate and energy policy discussions.