India’s renewable energy generation has not matched our energy capacity. Critically analyze.
India’s renewable energy installations have surged in recent years, but actual electricity generation from these sources remains low, a mismatch driven by soaring demand, extreme weather, and storage limitations, according to a new analysis by Climate Action Tracker. While renewable energy accounted for 37 per cent of India’s total generation capacity, it contributed only 18 per cent to the actual power mix
Status of Energy sector in India:
Energy Mix:
Coal:
Dominates India’s energy mix, accounting for around 50% of power generation, though its share is gradually decreasing.
Oil and Gas:
India heavily depends on imports for crude oil (85%) and natural gas (50%).
Renewables:
Renewable energy is rapidly growing, contributing approximately 30% to installed capacity, with solar and wind leading the way.
Hydropower and Nuclear:
Play a smaller yet significant role in the overall energy supply.
Scenario of Renewable energy sector in India:
As of March 31, 2025, India’s total installed renewable energy capacity is 220.10 GW. This includes,
Solar Power: A significant portion of the renewable energy capacity, with 97.86 GW as of January 28, 2025.
Wind Power: 47.96 GW.
Hydro Power: Includes small hydro power, contributing 5.08 GW.
Biomass Energy: 10.72 GW, including bagasse-based and non-bagasse-based cogeneration.
Waste-to-Energy: 0.61 GW.
- India’s Potential: India has a high potential for renewable energy, particularly solar energy, with the National Institute of Solar Energy (NISE) estimating its potential at 748 GW.
- The country aims to achieve 50% of its energy capacity from renewable sources by 2030 and 500 GW of non-fossil fuel-based energy capacity by the same year.
- India’s installed renewable energy capacity has increased by 165% over the past decade, rising from 76.38 GW in 2014 to 203.1 GW in 2024.
- The government has implemented various schemes and policies to promote renewable energy development, including the National Solar Mission and various solar parks.

Energy gap: Between installed capacity and actual power generated:
- An analysis by the Climate Action Tracker has revealed that renewables made up 37 per cent of India’s installed generation capacity. However, they contributed only about 18 per cent to the electricity generated.
- Several factors contributed to the gap between installed capacity and actual generation, according to the researchers.
- Chief among them was the country’s rising electricity demand due to extreme heat. Power consumption rose by 14 per cent in May 2024 compared to the same month in 2023, prompting increased domestic production and imports of coal and fossil gas. As a result, in comparison to renewables, the latter has a higher share in the energy mix.
- Weather-related factors have also driven lower energy demand from renewables. Limited storage capacity posed a challenge, as it meant that electricity demand at night continued to be met largely through fossil fuel sources. In addition, lower-than-expected solar radiation and variable wind patterns affected generation too.
Total electricity generation in India reached 2,058 terawatt-hours (TWh) in 2024, up from 937 TWh in 2010. Coal’s share in the power mix rose from 69 per cent in 2010 to 75 per cent in 2024, while renewable energy increased from 15 per cent to 20 per cent in the same period. The share of fossil gas declined from 13 per cent to 3 per cent and other clean energy sources rose from 1 per cent to 3 per cent.

Challenges in renewable energy production in India:
- Energy Demand and Supply Gap: Rapid urbanization and industrialization have led to a growing demand for energy, outpacing domestic supply capabilities.
- Dependence on Imports: India imports over 85% of its crude oil and 50% of its natural gas, exposing the economy to volatile global prices and supply disruptions.
- Coal Dependence: Despite efforts to diversify, coal remains the backbone of energy sector in India, contributing to high carbon emissions and environmental concerns.
- Moreover 27 GW of new coal capacity was either under construction or in advanced planning, with an additional 24.2 GW expected between 2027 and 2032.
- Renewable Energy Integration: Transitioning to renewable energy faces challenges in terms of grid infrastructure, storage technology, and managing intermittent power supply.
- Energy Access: Rural areas and remote regions still struggle with reliable and affordable electricity.
- Financial Constraints: Discoms (distribution companies) face financial instability due to inefficiencies, losses, and tariff-related issues.
- Environmental Impact: High reliance on fossil fuels contributes to air pollution, greenhouse gas emissions, and ecological degradation.
- India’s ambiguous approach to phasing out fossil gas. While its 2030 generation targets were broadly aligned with a 1.5°C scenario, current fossil gas expansion plans were inconsistent with a full phaseout by 2040.
Way forward:
- India’s energy future hinges on balancing growth, sustainability, and security. Expanding renewable energy capacity, particularly solar and wind, is critical to reducing dependence on fossil fuels. Modernizing the grid for efficiency and integrating distributed energy systems will enhance reliability.
- Investing in energy storage and green hydrogen technologies can address intermittency challenges. International financial and technological collaboration is of high priority.
- Diversifying energy sources and boosting domestic production of oil, gas, and biofuels will enhance energy security. Accelerating rural electrification and promoting energy efficiency can ensure inclusive and sustainable development.
- Renewable energy in India would need to supply 52-65 per cent of the country’s electricity by 2030 and 91-96 per cent by 2040, to be compatible with climate goals.
Summary: