India achieved a landmark in its clean energy journey by adding a record 22 gigawatts (GW) of renewable energy capacity in the first half of 2025, marking a 57 per cent increase from the 14.2 GW installed during the same period last year.
The new additions comprised 18.4 GW of solar, 3.5 GW of wind, and 250 megawatts (MW) of bioenergy generated from plant and animal waste, representing the country’s highest-ever six-month renewable capacity expansion.
This surge in renewable installations was primarily driven by developers accelerating projects to benefit from the Indian government’s Interstate Transmission System (ISTS) charge waiver, which started at 25 per cent and will escalate annually until fully phased out by June 2028.
The waiver significantly reduces transmission costs, creating strong incentives for timely project completion.
With these additions, India’s total installed clean energy capacity, including large hydropower projects, now stands at 234 GW, edging closer to the government’s goal of sourcing 50 per cent of its installed power capacity from clean energy.
Despite this progress on capacity, fossil fuels like coal, oil, and gas continue to dominate actual electricity generation, accounting for around 75 per cent of power produced in the first half of 2025.
Nuclear power is also gaining traction with the commissioning of Unit 7 of the Rajasthan Atomic Power Project — a 700-MW unit linked to the northern grid — and government approval for the country’s first small modular reactor (SMR) planned in Bihar.
However, coal reliance remains a critical challenge, while the role of nuclear energy faces ongoing debate due to concerns about costs, safety, and waste management.
“India installed 22 GW of renewable energy capacity in the first half of 2025, a new record,” said Sushma Jagannath, Vice President of Renewables and Power Research at Rystad Energy.
“However, the country is still banking heavily on coal to meet growing power demand, with plans to install an additional 80 GW of new thermal projects.
“India is not yet undergoing a true energy transition; instead, it is focusing on building up installed capacity from both conventional and renewable energy sources to ensure energy security.
“Without urgent action to improve affordability and sustainability, particularly through grid upgrades and energy storage, coal will remain central to electrification efforts, jeopardising progress toward India’s net-zero goals.”
In parallel with capacity expansion, India’s battery energy storage systems (BESS) market witnessed significant growth, with 5.4 GW of collocated solar-BESS and 2.2 GW of standalone BESS awarded to developers — the highest allocation to date.
This reflects increasing focus on grid stability and the integration of renewables.
Quoted tariffs averaged around INR 4,000 ($48.02) per megawatt-hour (MWh) for standalone BESS and INR 3,208 (US$38.50) per MWh for collocated solar-BESS projects, indicating a downward price trend likely to encourage more integrated installations.
Major developers participating include Jindal Group securing 990 MW of collocated solar and BESS capacity; NTPC and ReNew with 900 MW each in the same category; JSW Energy awarded 625 MW in standalone BESS; Reliance Power with 525 MW of collocated capacity; and Adani Green moving towards collocated solar and BESS projects by securing 510 MW.
Geographically, India’s western regions lead the renewable rollout. Rajasthan tops the list with 37.4 GW installed capacity (32 GW solar, 5.2 GW wind), benefiting from high solar irradiance and desert terrain.
Gujarat follows with 35.5 GW (21.5 GW solar, 13.8 GW wind), and Tamil Nadu ranks third with over 22 GW (11.8 GW wind and 10.6 GW solar), also contributing 1 GW in bioenergy to the national total of 11.6 GW.
Other states with notable wind capacity include Karnataka, Maharashtra, Andhra Pradesh, and Madhya Pradesh.
India’s record renewable energy additions in early 2025 signal strong momentum, yet balancing growth with energy security and sustainability remains critical as the country navigates complex challenges in transitioning away from fossil fuels.
