India’s Renewable Power Output Soars 24.4% in H1 2025, Coal Usage Slips

India’s renewable energy generation has recorded its fastest growth in over two years, marking a major step in the country’s clean energy transition. A Reuters analysis of official data shows that renewable power output surged by 24.4% year-on-year to reach 134.43 billion kilowatt-hours (kWh) in the first half of 2025.

This dramatic increase in green power generation—excluding large hydropower—has pushed the share of renewables to an all-time high of over 17% in June, signaling growing momentum in India’s energy diversification efforts.

In contrast, coal-fired electricity—the mainstay of India's power supply—saw a nearly 3% decline during the same period. Overall electricity generation grew only 1.5% in the first six months of 2025, a significant slowdown compared to the 5.8% growth recorded in 2024.

Analysts attribute this decline in coal usage to a combination of factors, including a milder-than-expected summer brought on by an early monsoon and signs of softening economic activity. The reduced power demand has resulted in record-high domestic coal stockpiles and a sharp drop in coal imports by India, the world’s second-largest coal consumer after China.

Accelerated Renewable Capacity Additions

India is rapidly scaling up its clean energy infrastructure. The country added 16.3 gigawatts (GW) of new wind and solar power capacity in the first five months of 2025 alone, according to government data. For the full year, India is projected to add 32 GW of renewable capacity—up from around 28 GW in 2024—according to Vikram V, Vice President of Corporate Ratings at ICRA, a Moody’s Group company.

This acceleration follows a period of stagnation that saw India fall short of its 2022 target of installing 175 GW of renewable capacity. As of now, the country’s total non-fossil fuel capacity—comprising solar, wind, hydro, and nuclear—stands at 235.6 GW. The government has set an ambitious goal of expanding this to 500 GW by 2030.

However, experts warn that meeting this target will require significant upgrades to India’s power infrastructure. “We believe this goal is achievable, but in our base case scenario, the timeline may extend to 2032,” said a recent note by S&P Global Commodity Insights. The agency emphasized the need for extensive investments in grid modernisation and energy storage systems to ensure reliable integration of intermittent renewable sources.

India’s Green Energy Push Gains Momentum

The sharp rise in clean energy output comes at a critical time, as India looks to reduce its dependence on fossil fuels and curb emissions while meeting growing power demands. With renewable energy now playing a more prominent role in the country’s power mix, the shift away from coal appears to be gaining traction.

If the current pace of capacity additions continues and necessary infrastructure support is ensured, India could well be on its way to achieving one of the world’s most ambitious energy transitions.

Also Read: Renewable Energy Sector to Witness 18.9% Job Growth in FY25: Report