As the global energy landscape undergoes a structural transformation—driven by climate commitments, geopolitical uncertainties, and the growing need for energy security—India finds itself navigating a uniquely complex path. As one of the world’s fastest-growing major economies, its energy demand continues to rise steadily, requiring a careful balance between sustainability, affordability, and reliability.
Over the past decade, India has significantly accelerated its renewable energy push, supported by policy interventions, infrastructure expansion, and increasing investments. At the same time, conventional sources such as coal remain critical to meeting base-load demand. This dual reality underscores the evolving nature of India’s energy transition—where progress in clean energy must coexist with structural dependencies.
Against this backdrop, the latest energy data offers valuable insights into how India is reshaping its energy mix while managing competing priorities.
As the global energy landscape undergoes a profound shift—driven by climate imperatives, geopolitical disruptions, and the race for energy security—countries are being compelled to rethink how they produce, distribute, and consume power. For a rapidly growing economy like India, this transition is particularly complex: it must simultaneously meet rising energy demand, reduce dependence on imports, and accelerate the shift towards cleaner sources without compromising affordability or reliability.
In this evolving context, India’s energy story is no longer just about capacity addition—it is about managing a delicate balance between growth and sustainability. The country’s policy push, investment momentum, and technological adoption are beginning to reshape its energy mix, even as traditional sources continue to play a critical role.
It is against this backdrop that the Energy Statistics India 2026 report, released by the Ministry of Statistics and Programme Implementation (MoSPI), offers a comprehensive snapshot of India’s energy sector—capturing both the scale of progress and the structural challenges that lie ahead.
Evolving dynamics of Indian renewable energy sector
According to the report, India’s energy sector demonstrated steady expansion in FY 2024-25, with Total Primary Energy Supply (TPES) increasing by 2.95% year-on-year to reach 9,32,816 KToE (kilotonnes of oil equivalent). At the same time, India continues to hold significant renewable energy potential, estimated at 47,04,043 MW as of March 31, 2025.
Solar energy dominates this potential, witnessing an exceptional surge from 7,48,990 MW in FY 2023–24 to 33,43,378 MW in FY 2024–25, accounting for nearly 71% of the total renewable energy potential.
Wind power follows with 11,63,856 MW, while large hydro contributes 1,33,410 MW.
Notably, over 70% of India’s renewable energy potential is concentrated in six states. These are
- Rajasthan (23.70%),
- Maharashtra (14.26%),
- Gujarat (9.10%),
- Andhra Pradesh (9.1%),
- Karnataka (8.59%) and
- Madhya Pradesh(8.09%).
The country has also made significant progress in expanding its renewable energy capacity, the report stated. Installed capacity from renewable sources (including both utility and non-utility segments) has risen sharply from 90,134 MW as of March 2016 to 229,346 MW as of March 2025, registering a compound annual growth rate (CAGR) of 10.93%. Correspondingly, electricity generation from renewable sources has increased from 1,89,314 GWh in FY 2015–16 to 4,16,823 GWh in FY 2024–25, reflecting a CAGR of 9.17%.
Energy consumption patterns indicate rising demand, with per capita energy consumption increasing from 15,296 megajoules per person in FY 2015–16 to 18,096 megajoules per person in FY 2024–25, growing at a CAGR of 1.89%.
Improvements in efficiency are also evident, as transmission and distribution (T&D) losses declined from around 22% in FY 2015–16 to nearly 17% in FY 2024–25, indicating better utilisation of generated electricity.
Despite the growth in renewables, coal continues to be the dominant energy source in India’s overall energy mix. As per the report, energy supply from coal, including lignite, increased significantly from 3,87,761 KToE in FY 2015–16 to 5,52,315 KToE in FY 2024–25.
Other conventional sources such as crude oil and natural gas have also shown consistent growth over the years, reflecting sustained dependence on fossil fuels.
The Total Final Consumption (TFC) of energy across end-use sectors has risen markedly, increasing by over 30.41% from 4,69,212 KToE in FY 2015–16 to 6,08,578 KToE in FY 2024–25.
In parallel, financial support to the energy sector has strengthened, with credit flow rising more than sixfold—from ₹1,688 crore in 2021 to ₹10,325 crore in 2025—indicating growing investment and policy focus on the sector’s expansion and modernisation.
Scaling renewable energy: Growth, policy support, and capacity building
India’s renewable energy expansion reflects a policy-driven transformation that combines scale, speed, manufacturing depth, and global engagement. According to the International Renewable Energy Agency (IRENA)’s Renewable Energy Statistics 2025, India ranks fourth globally in total installed renewable energy capacity.
Solar energy, notably, has witnessed a sharp and rapid surge in growth. The installed solar capacity rose sharply from rose from 3 GW in 2014 to 140 GW in January 2026. This increase has helped push non-fossil fuel capacity beyond 50% of total installed electricity capacity.
Wind energy also plays a substantial role, contributing significantly to the renewable mix and strengthening grid diversification alongside solar. The installed wind capacity reached about 54.65 GW by January 2026. Solar and wind energy together make up the majority of India’s clean energy capacity.
A range of government programmes has underpinned this expansion across households, agriculture, infrastructure, and manufacturing:
- PM Surya Ghar has driven rooftop solar adoption among 23.9 lakh households, contributing about 7 GW of distributed clean energy capacity.
- The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) is promoting solarisation in agriculture, helping reduce diesel reliance and improve energy access for farmers, with a target of installing 14 lakh standalone pumps by March 2026.
- Around 55 solar parks across 13 states have been sanctioned, with a cumulative capacity of nearly 40 GW, accelerating utility-scale deployment.
- The Production Linked Incentive (PLI) Scheme, with an outlay of ₹24,000 crore, is strengthening domestic manufacturing and reducing dependence on imports.
Consequently, renewable energy growth now spans generation, infrastructure, manufacturing, and global linkages. The emphasis has shifted from merely expanding capacity to creating a robust, competitive, and self-reliant clean energy ecosystem.
Global engagement and India’s role in clean energy leadership
While accelerating its domestic energy transition, India is also emerging as an influential voice in global discussions on clean energy, affordability, and sustainability. Its international partnerships complement national initiatives and position the country as a key contributor to global energy solutions.
On the international stage, India has taken a leading role in forums such as the G20 Energy Transitions Working Group, fostering cooperation on clean fuels and energy security. During its G20 Presidency, it also launched the Global Biofuels Alliance (GBA), uniting 25 countries and 12 international organisations to promote affordable, low-carbon biofuels worldwide.
The country has further deepened its engagement in energy efficiency by becoming a member of the International Energy Efficiency Hub in 2024, bringing its domestic efforts in line with globally recognised best practices.
As part of its commitments under the UNFCCC framework, India has pledged to achieve net zero emissions by 2070 and reduce the emissions intensity of its GDP by 45% by 2030, demonstrating a balanced approach to economic growth and climate responsibility.
Collectively, these efforts position India as a constructive voice of the Global South, advocating for affordable clean energy, equitable climate finance, and improved access to technology.
Conclusion
India’s energy transition reflects both strong progress and ongoing challenges. While renewable energy capacity is expanding rapidly, supported by policy initiatives and rising investments, coal continues to dominate the energy mix due to growing demand and structural constraints. This highlights the need to balance sustainability with energy security. Moving forward, enhancing grid infrastructure, expanding energy storage, and improving efficiency will be essential to meet growing demand through cleaner, reliable, and cost-effective energy systems.
Read more
The Evolving Spectrum of Energy Sources
The great crossover: Clean energy takes the lead in India
Viksit Bharat meets Net Zero: Rewiring India’s growth model
FAQ
- What does the Energy Statistics India 2026 report highlight about renewable energy growth?
The report shows a steady rise in the share of renewable energy in electricity generation, alongside a decline in non-renewable sources, indicating India’s gradual shift towards cleaner energy. - Which renewable energy source dominates India’s potential capacity?
Solar energy leads India’s renewable potential, accounting for around 71% of the total estimated capacity, followed by wind and hydro power. - Why does coal continue to dominate India’s energy mix?
Coal remains dominant due to rising energy demand, existing infrastructure, and the need for reliable base-load power despite rapid renewable expansion. - What are the key government initiatives driving renewable energy growth in India?
Major initiatives include PM Surya Ghar, PM-KUSUM, solar parks, and the Production Linked Incentive (PLI) scheme, which promote adoption, infrastructure, and domestic manufacturing. - How is India contributing to global clean energy efforts?
India is actively engaged through initiatives like the International Solar Alliance (ISA) and the Global Biofuels Alliance, along with participation in global forums, promoting sustainable and inclusive energy transition.
