India’s renewable energy output sees fastest growth since 2022

India’s renewable power output rose by 24.4% in the first half of 2025 — its fastest pace since 2022 — fueled by a sharp increase in wind and solar capacity additions. This growth led to a nearly 3% decline in coal-fired generation, as overall power output expanded at a slower rate. With a target of 500 GW of non-fossil fuel capacity by 2030, India’s clean energy transition hinges on accelerating grid modernization to effectively integrate growing renewable sources.

India’s renewable power sector is witnessing a major surge, with output rising at its fastest pace since 2022 in the first half of 2025, according to a Reuters analysis of government data. Renewable electricity generation, excluding large hydro, jumped 24.4% to 134.43 billion kilowatt hours (kWh) between January and June this year. This spike helped renewables claim a record 17% share of India’s power mix in June — a significant milestone for the country’s clean energy transition.

The surge in renewables came even as overall electricity output growth slowed to 1.5% in the first half of 2025, down from 5.8% in 2024. The deceleration was attributed to a milder summer — triggered by an earlier-than-expected monsoon — and cooling economic activity. These factors also led to a nearly 3% drop in coal-fired generation, which remains the dominant source of electricity in India.

Lower power demand meant India built up record coal stockpiles and slashed imports, despite being the world’s second-largest coal consumer after China. The shift marks a crucial moment in India’s energy landscape, as cleaner sources begin to claim greater space in the grid.

According to Vikram V, Vice President of Corporate Ratings at Moody’s affiliate ICRA, renewable power generation is expected to maintain its momentum, with India on track to add 32 gigawatts (GW) of renewable capacity in 2025 — up from about 28 GW in 2024. In the first five months of this year alone, the country added 16.3 GW of wind and solar capacity, signalling a significant acceleration in clean energy installations.

This comes after India missed its earlier target of installing 175 GW of renewable capacity by 2022, due to a mix of policy and infrastructure delays. However, the country has since regained momentum and is now aiming to achieve 500 GW of non-fossil fuel capacity — including hydro and nuclear — by 2030. Currently, total non-fossil capacity stands at 235.6 GW.

While analysts at S&P Global Commodity Insights believe the 2030 target is “achievable”, they caution that it could be pushed to 2032 unless India makes substantial progress in grid modernisation and energy storage. These two areas are considered vital for the successful integration of intermittent renewable sources like wind and solar into the national grid.