Renewable Surge Boosts India’s 2030 Goal, Coal Still Key

India has recorded its strongest-ever growth in renewable energy installations in the first half of 2025, marking a significant step forward in the nation’s ambitious clean energy transition. According to data released by the Central Electricity Authority (CEA), the country added 22 gigawatts (GW) of renewable capacity between January and June—an increase of 56% compared to the same period last year.

This unprecedented pace of deployment has pushed India’s total non-fossil energy capacity—comprising solar, wind, large hydro, and nuclear—beyond its fossil fuel-based capacity for the first time in history. The milestone gives fresh impetus to India’s goal of achieving 500 GW of non-fossil energy capacity by 2030, a target that had long been met with skepticism due to sluggish progress in previous years.

Despite this record-breaking growth, coal continues to dominate India’s electricity generation mix. The country, which is the world’s third-largest greenhouse gas emitter, still relies on coal for nearly 75% of its power output. Moreover, coal capacity continues to expand, driven by the surging demand for electricity in a rapidly developing economy.

Experts caution that while the expansion of renewable energy is promising, India is far from undergoing a full-fledged energy transition. “India is not yet experiencing a true energy transition,” said Sushma Jagannath, Vice President for Renewables and Power at consultancy firm Rystad Energy. “Without urgent upgrades to the national power grid and massive investments in energy storage infrastructure, coal will remain the backbone of India’s electrification push—potentially derailing its net-zero aspirations.”

The intermittency of solar and wind energy continues to be a major hurdle. Large-scale battery storage and flexible grid infrastructure are essential to ensure stable power delivery and reduce dependency on coal-fired backup. While some pilot storage projects are underway, nationwide rollout remains limited and underfunded.

India’s clean energy ambitions are closely tied to its broader climate commitments under the Paris Agreement, which include reaching net-zero carbon emissions by 2070. In the lead-up to that long-term goal, the country has pledged to meet 50% of its electricity requirements from non-fossil sources by 2030.

Policy reforms, international financing, and accelerated infrastructure development will be crucial in translating recent gains into lasting change. With global scrutiny intensifying and climate risks mounting, India’s energy trajectory over the next five years will be pivotal not just for its domestic sustainability goals, but also for the global fight against climate change.

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