Heramba Nath
(herambanath2222@gmail.com)
India has rapidly ascended to the position of the world’s fourth-largest energy consumer, a re- flection of its swelling economy, expanding industrial base, and a growing population whose demands for energy are increasing each year. This remarkable status underscores India’s crucial position in global energy geopolitics and marks a defining chapter in its contemporary economic history. The scale of its consumption, coupled with a complex, evolving policy framework, makes India’s energy narrative an essential aspect of its developmental story and a key determinant of its environmental commitments.
The country’s total installed power generation capacity as of March 2025 stands at 475.2 GW, a formidable achievement driven by determined policy efforts, technological innovations, and strategic investments. Out of this, renewable energy sources constitute 232 GW, representing nearly half of the national capacity, a milestone that reflects India’s long-term commitment to transitioning from fossil fuels towards a cleaner, sustainable future. The government’s consistent efforts in enhancing solar, wind, hydropower, bioenergy, and nuclear energy capacities have collectively redefined the nation’s energy profile.
India’s solar energy sector has been the most visible symbol of this transition. The country has added 23.83 GW of solar power in the financial year 2024–25 alone, taking cumulative solar capacity to 105.65 GW. Major solar parks in states like Rajasthan, Gujarat, and Andhra Pradesh have become operational symbols of this transformation. The adoption of rooftop solar systems in urban households and industries further decentralises energy production while contributing to energy security and reducing transmission losses.
Wind energy remains another critical contributor, with an installed capacity of 48.16 GW. The coastal states of Tamil Nadu, Karnataka, Maharashtra, and Gujarat have capitalised on their favourable wind corridors to establish large-scale wind farms, while newer offshore wind projects are beginning to take shape. The integration of wind energy into the national grid has faced certain technical challenges, but significant investments in grid modernisation and storage technologies are addressing these obstacles.
Despite these achievements, India continues to rely heavily on coal for its electricity requirements. Approximately 70% of power generation remains coal-based. In FY 2024–25, coal production reached a record 1 billion tonnes, with around 880 million tonnes consumed by the power sector. Coal’s prominence is driven by its affordability, reliability, and capacity to support base-load power, especially in industrial clusters and urban centres. This dependence on coal presents significant environmental and public health challenges, including air pollution and greenhouse gas emissions, issues that remain central to India’s energy policy debates.
The government has aggressively promoted renewable energy storage solutions to counter the intermittent nature of solar and wind power. Bids have been launched for 6,000 MW of renewable energy projects with integrated storage systems. Battery storage parks, pumped hydro facilities, and smart grids are receiving increasing policy and financial support. These innovations not only ensure a reliable power supply during peak demand but also improve grid stability, an essential requirement as the share of renewables continues to expand.
The private sector’s role in India’s energy landscape has been monumental. Conglomerates like Reliance Industries, Adani Green, and Tata Power have invested heavily in solar parks, battery manufacturing plants, and green hydrogen projects. Reliance’s plan to manufacture up to 20 GW of solar photovoltaic modules annually by 2030 is expected to further solidify India’s position as a global solar hub. The shift towards domestic manufacturing of energy equipment aligns with the government’s ‘Atmanirbhar Bharat’ initiative, aimed at reducing import dependence, fostering employment, and developing a robust energy technology ecosystem within the country.
Prime Minister Narendra Modi’s leadership has been decisive in shaping India’s energy transformation. Since assuming office in 2014, PM Modi has personally overseen the elevation of energy security and renewable development to national strategic priorities. Under his stewardship, India has set one of the world’s most ambitious non-fossil fuel capacity targets, aiming to achieve 500 GW by 2030. His government’s direct involvement in launching international collaborations like the International Solar Alliance and India’s National Hydrogen Mission reflects a global, forward-thinking strategy designed to position India as a responsible and influential energy power.
PM Modi has prioritised large-scale solar and wind projects, decentralised rooftop solar systems, and revisions to renewable purchase obligations. His government’s proactive engagement with global investors, removal of policy bottlenecks, and introduction of transparent auction systems have attracted significant international capital into India’s renewable sector. Additionally, Modi’s emphasis on linking energy policy with employment generation, rural empowerment, and environmental protection has helped embed energy transition within the broader framework of social welfare and sustainable development.
India has expanded its commitment to nuclear power as part of its non-fossil portfolio. Nuclear energy capacity currently stands at around 7 GW, with an additional 700 MW Pressurised Heavy Water Reactors under construction. These projects are crucial to providing reliable, base-load power without the carbon emissions associated with fossil fuels, further balancing India’s energy mix.
International collaborations have played a significant role in accelerating India’s energy capacity growth. Bilateral agreements with countries such as the United States, Japan, Australia, and the United Arab Emirates have enabled knowledge-sharing, financial investments, and joint ventures in renewable energy projects and smart grid systems. India’s proactive leadership within the International Solar Alliance has further solidified its influence in global clean energy dialogues, particularly among developing nations.
Energy efficiency initiatives complement India’s supply-side strategies. The Bureau of Energy Efficiency has successfully implemented appliance labelling, industrial benchmarking, and mandatory building codes to curb excessive consumption. The PAT (Perform Achieve Trade) scheme incentivises industries to adopt energy-saving measures by allowing them to trade excess savings as certificates in an open market.
The electrification of transportation infrastructure is another priority area. The government’s target to significantly increase electric vehicle (EV) adoption is backed by tax incentives, charging infrastructure programmes, and production-linked incentives for EV manufacturers. This transition reduces petroleum import dependency, improves urban air quality, and modifies the nation’s electricity demand profiles.
Yet, India’s path to a diversified, low-carbon energy future is not without challenges. The socio-economic reliance on coal mining in several states complicates transition strategies. Coal provides livelihoods to millions and supports regional economies, necessitating a carefully phased approach to ensure equitable outcomes. Technical barriers in integrating renewable energy into the grid, land acquisition hurdles for large projects, and the capital-intensive nature of battery storage solutions also demand long-term policy and financial innovations.
Access to reliable and affordable electricity remains a persistent issue, particularly in rural and remote regions. While schemes like Saubhagya have improved household electrification on paper, the quality of supply often remains inconsistent. Community-based decentralised renewable systems, mini-grids, and solar rooftops are being promoted to address these gaps.
India’s bioenergy and waste-to-energy potential remain largely untapped but have gained renewed interest in recent years. Initiatives for biomass co-firing in thermal power plants, second-generation ethanol production, and compressed biogas generation are underway. These projects have the dual advantage of enhancing rural incomes through biomass procurement and reducing the environmental burden of agricultural waste.
Hydropower continues to contribute to India’s energy basket but faces challenges concerning environmental clearances, rehabilitation concerns, and biodiversity preservation. The government supports small hydro projects, especially in hilly and remote areas, as these are less ecologically intrusive and offer region-specific benefits.
Air pollution from fossil fuel combustion, especially in densely populated urban centres, poses significant public health risks. Transitioning to cleaner fuels and increasing renewable penetration are critical to mitigating these health hazards. The National Clean Air Programme complements these efforts by setting reduction targets for particulate pollution in over 100 cities.
India’s ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030 is ambitious but attainable, provided consistent policy support, international partnerships, and financial mobilisation continue. The current achievement of over 232 GW of non-fossil capacity as of early 2025 signals a credible trajectory towards this milestone. PM Modi’s role in rallying international support, driving domestic policy reforms, and ensuring the integration of energy transition into broader socio-economic frameworks has been indispensable.
India’s industrial sector, consuming over 40% of national energy, has been encouraged to adopt efficient technologies and renewable captive power systems. Energy-intensive sectors such as steel, cement, and chemicals are integrating waste heat recovery, process optimisation, and green energy procurement to improve competitiveness and reduce emissions.
Overall, India’s emergence as the world’s fourth-largest energy consumer symbolises the dynamic intersection of demographic growth, economic ambition, political will, and environmental responsibility. The ongoing evolution of its energy sector will not only shape the nation’s developmental future but also exert profound influence on global energy markets, climate negotiations, and the sustainable growth trajectories of other developing nations.