India’s non-fossil power generation capacity to touch 50% by December

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Half of India’s electricity generation capacity could be non-fossil fuel based from as early as December this year, even as the share of renewables in the country’s energy consumption mix is likely to remain low at 13-15 percent, according to government data seen by Moneycontrol. That's because installed capacity does not naturally mean consumption in the case of renewable energy, and other interventions are needed before that can happen.

For the first time, India could well hit a stage where its renewable energy and thermal capacities will be 50 percent each, signalling a sizeable growth in sectors such as solar and wind power generation. The stride would not only bring the country closer to its goal of having 500 gigawatts (GW) of energy generation capacity from non-fossil fuel sources by 2030, but will also put India in the league of countries like China, Iceland, Norway, Brazil, New Zealand and Denmark, where clean energy capacity is 50 percent or more.

“In FY26, nearly 12,000 MW new thermal capacity will be added. But during the same period, at least 32,000 MW renewable capacity will also be added. So we expect to reach a 50:50 scenario in our power generation portfolio as early as December. In the worst case scenario, if installations in some projects slow down, we are still certain to achieve this milestone well within FY26,” said a senior official in the power ministry.

Also read: India spent $100 billion on clean energy in 2024, China $627 billion, say IEA.

Currently, of India’s total 4,70,448 MW installed capacity, 53 percent or 2,47,590 MW is from fossil fuel-based power generation units such as coal and lignite plants, while 47 percent or 2,22,858 MW is accounted for by non-fossil fuel installations.

Yet, coal-fired power is going to do the heavy lifting in terms of meeting India’s peak power demand for now due to intermittency of renewable energy. If renewable power is to be made available around the clock, the first requirement is energy storage systems. These could be battery energy storage systems (BESS) or pumped storage plants (PSPs). Large-scale deployment of these is still in the planning and execution stage, which is why it could take a year or two for the contribution of renewable energy to increase in India’s overall power consumption mix.

Also read: India announces Rs 5,400 crore funding scheme to build 30 GWh battery energy storage.

“The energy mix to meet India’s power demand this year is going to be the same with the share of renewables increasing marginally by 2-3 percentage points from 11-12 percent. Last year, thermal contributed 74 percent to meet the peak demand of 250 GW. This year too, thermal power has been contributing in the range of 70-74 percent. The remaining is supplied by hydropower plants,” said a second senior government official.

Officials also clarified that the share of renewables in the national power generation capacity could fluctuate by 1-4 percentage points in the coming years, depending on the pace of construction of thermal plants in any given year.

“For example, next year, thermal could be up again by 1-2 percent if the commissioning of some plants is not delayed. But by and large, the energy capacity mix is going to remain nearly 50:50 from FY26 onward,” the official added.