The Renewable Energy Reality: India's 2025 Report Card

 

Introduction

India is rapidly advancing in its transition toward renewable energy, with 2024 marking a significant milestone: a record 30 GW of renewable capacity was added — more than double the 13.75 GW added in 2023. This momentum reflects the government’s dedication to reaching its target of 500 GW of non-fossil fuel capacity by 2030. However, while the surface shows strong commitment, a closer look reveals a more complex picture filled with both breakthroughs and bottlenecks.

Current Landscape

As of December 2024, India’s total renewable energy installed capacity stands at 209.44 GW, a 15.84% increase year-over-year. Solar energy leads this surge with a 24.54 GW addition, followed by 3.42 GW from wind. In early 2025, the Ministry of New and Renewable Energy (MNRE) announced a roadmap to add another 50 GW of renewable capacity by March 2026.

Additionally, the Indian Renewable Energy Development Agency (IREDA) has received over INR 12,000 crore in funding proposals from both private and public developers in Q1 2025. Notably, Adani Green has committed $3.6 billion in capex for FY26, reflecting strong private sector confidence.

India's Renewable Energy Growth & Budget (2018-2025)

Expectation vs. Reality

Expectations:

• Consistent Additions of 50 GW/Year: To meet the 2030 target, India needs to add ~50 GW annually.
• Phase-Out of Coal: Nationally and globally, India is expected to pivot away from coal-based energy.
• Grid and Storage Infrastructure: Strong expectations exist for rapid deployment of battery storage and grid upgrades.
• Investor Confidence: Stable, policy-driven growth was expected to draw long-term global investments.

Reality (as of April 2025):

• Coal is Still Expanding: As per Reuters (April 2025), India is constructing over 30,000 MW of new coal-fired capacity, contradicting green energy goals.
• Transmission Bottlenecks: Grid expansion in Northeast India and rural belts has slowed due to terrain and monsoon-related disruptions (TOI, Feb 2025).
• Financial Stress in DISCOMs: Multiple state DISCOMs defaulted on payment deadlines in Q1 2025, impacting cash flows for solar and wind project developers.
• Policy Fragmentation: Differences in state land acquisition rules, taxation on renewable imports, and inconsistent net-metering laws continue to create confusion.

Pros and Cons

Pros:

• Robust Policy Support: India’s green hydrogen mission, PLI for solar, and incentives for domestic manufacturing have gained traction in Q1 2025.
• Private Sector Investment: Adani Green, Tata Power, and Reliance New Energy have all boosted their investment portfolios in early 2025.
• Strategic Global Collaborations: Agreements with Chile and Australia on lithium and cobalt procurement were signed in March 2025.

Cons:

• Land Acquisition Delays: Several large-scale projects in Gujarat and Maharashtra faced protests and litigation due to tribal land conflicts.
• Grid Instability: A blackout in Tamil Nadu in March 2025 was traced back to poor renewable load balancing.
• Import Dependency: India still sources more than 60% of its solar wafers and storage batteries from China, as of April 2025.

My Personal Opinion

India’s green energy ambitions are on the right path, but its roadmap requires better alignment between policy and on-ground realities. More emphasis must be placed on infrastructure, domestic manufacturing, and financial stability. While investor appetite remains strong, long-term trust depends on regulatory consistency and execution efficiency. Diversification of import sources and investment in local R&D should be prioritized.

Final Verdict

India’s clean energy journey is promising, with real momentum building in 2024 and early 2025. However, execution gaps, policy inconsistencies, and infrastructure bottlenecks continue to delay the full realization of its goals. The potential is immense, but India must focus on translating policy into performance consistently to be a true global leader in energy transition.