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Renewable Energy Boom Drives India’s Growth, Security and Global Leadership

India’s Renewable Energy Growth Seen Driving $10–15 Billion Land Deals

New Delhi, March 26: India’s accelerated transition to renewable energy is emerging as a critical pillar of economic resilience, strategic autonomy, and long-term energy security, as global energy markets face recurring disruptions.

The Government of India has achieved a major milestone, with 51.93% of the country’s installed power capacity now sourced from non-fossil fuels—surpassing its initial 50% target ahead of schedule. This marks a structural shift away from dependence on coal and imported hydrocarbons.

Rapid Capacity Expansion
India’s renewable energy capacity has more than tripled over the past decade, rising from 76.38 GW in 2014 to 253.96 GW by November 2025. In FY 2025–26 (till December), the country added 38.61 GW, driven primarily by solar energy (30.16 GW), followed by wind and hydro.

This growth has been supported by flagship initiatives such as PM-KUSUM, PM Surya Ghar, CPSU solar programmes, and production-linked incentives (PLI) aimed at strengthening domestic manufacturing.

Ambitious Growth Targets
India aims to reach 500 GW of renewable capacity by 2030, alongside plans to scale solar generation by 400% and wind energy by 300% by 2035. The broader energy transition is expected to attract investments of nearly $2.2 trillion over the next two decades.

Globally, India ranks fourth in renewable energy capacity, behind China, United States, and Brazil, according to International Renewable Energy Agency.

Diversifying the Clean Energy Mix
Beyond solar and wind, India is expanding into emerging energy segments:

  • Green Hydrogen: Under the National Green Hydrogen Mission, the country targets production of 5 million tonnes annually by 2030.
  • Nuclear Energy: Plans are in place to scale nuclear capacity to 100 GW by 2047 for stable baseload power.
  • Small Hydro & Bioenergy: Schemes like the Small Hydro Power Development Programme (₹2,584.60 crore outlay) are unlocking decentralised energy potential, particularly in regions such as Jammu and Kashmir and Ladakh.

Energy Security Amid Global Volatility
Geopolitical tensions, including disruptions in the Strait of Hormuz, have underscored the risks of fossil fuel dependence. By reducing reliance on imports, India’s renewable push is helping shield the economy from global price shocks and supply disruptions.

Grid Modernisation and Innovation
To support large-scale renewable integration, India is investing in Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP), ensuring grid stability and efficient peak-load management. Falling tariffs and improved transmission infrastructure are further enhancing the competitiveness of clean energy.

Outlook
With sustained policy support, regulatory reforms, and increasing private participation, India is consolidating its position as a global clean energy leader. The transition not only advances climate goals but also strengthens economic stability and positions the country as a model for sustainable growth in an increasingly uncertain global energy landscape.

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