The BGA India team, led by Managing Director Anuj Gupta, wrote an update to clients about progress in India’s renewable energy transition.

Context

  • India is powering a dramatic transformation in its energy landscape, tripling its non-fossil fuel electricity generation capacity from just 81 gigawatts (GW) in 2014 to 250 GW today. Earlier this year, India reached a milestone: 50 percent of its total installed electricity capacity now comes from non-fossil sources, meeting one of its key Paris Agreement goals five years ahead of schedule. As of June, India’s total installed capacity stands at 495.6 GW, with 251 GW supplied by solar, wind, hydro, nuclear and bioenergy. Solar leads the way at 123 GW, propelled by flagship programs like PM-KUSUM and the PM Rooftop Solar scheme.
  • With a bold target of 500 GW renewable capacity by 2030, India has overtaken Germany to rank as the world’s third-largest renewable energy producer. This decade of remarkable growth — along with achieving one of the lower solar and wind tariffs globally — underscores the country’s unwavering commitment to clean, sustainable and renewable sources. India’s overall installed capacity growth is even more significant when considering that energy demand is expected to increase 9 percent each year, reaching 366.4 GW in 2030 and 458 GW in 2032 due to electrification, economic growth and rising temperatures.
  • Recognizing the need for a robust and flexible power system to accommodate rising renewable energy penetration, India is undertaking a series of reforms and pursuing technological advancements. Central to these efforts is the India Energy Stack (IES), a digital public infrastructure designed to unify, integrate and modernize the power sector. The IES will provide real-time data sharing, open application programming interfaces and unique identifiers for consumers and assets, in turn enhancing transparency and operational flexibility.

Significance

  • Solar energy constitutes 24.9 percent of India’s total installed capacity, while wind and hydro contribute 10.6 percent and 10.1 percent, respectively. The country’s solar capacity has increased from 2.8 GW in 2014 to the current 123 GW, while wind capacity has doubled to 53 GW over the same period. In sum, India’s total renewable energy capacity has risen by more than 170 percent in the last decade, now amounting to 251 GW.
  • Along with the country’s clean energy initiatives, coal remains predominant in the energy mix, accounting for 49.3 percent of total installed capacity. India’s energy policy continues to prioritize a balanced approach to energy security, sustainability and affordability. Coal will retain a substantial role even as renewable energy capacity expands.
  • Natural gas is being positioned as a “bridge fuel” to support the green transition due to its cleaner profile compared to coal, offering lower emissions while maintaining reliability. India aims to increase the share of natural gas in its energy mix from the current 6-7 percent to 15 percent by 2030. In pursuit of this goal, India’s public sector enterprises have signed several long-term liquefied natural gas (LNG) contracts in the past two years and invested substantially to expand LNG terminal capacity and pipeline infrastructure. These measures are designed to facilitate greater natural gas consumption and reduce overall emissions as renewable capacity ramps up.

Implications

  • India’s ambitious renewable energy goals open substantial opportunities for businesses, especially those innovating in battery energy and pumped storage systems, electrification technologies, emissions reduction, energy efficiency, grid modernization and carbon capture storage and utilization. For companies pursuing net-zero targets, India stands out as a welcoming market, backed by robust government support and ongoing policy reforms informed by industry feedback. This includes the imminent launch of the India Carbon Market and ongoing reforms to invite private sector participation in civil nuclear energy. India’s renewable energy sector welcomes 100 percent foreign direct investment, enabling global firms to establish wholly owned subsidiaries, forge joint ventures and engage in technology transfer to accelerate the adoption of advanced solutions.
  • Bilateral government-to-government mechanisms facilitate strategic collaborations, opening doors for international partnerships and knowledge exchange. To maximize returns and impact, investors must navigate India’s dynamic landscape of state and federal policies, which include clear renewable targets, special incentives such as accelerated depreciation, viability gap funding and production-linked benefits. A thorough understanding of these frameworks will empower business leaders to capitalize on India’s ambitious clean energy goals and contribute meaningfully to its sustainable future.

We will continue to keep you updated on developments. If you have any comments or questions, please contact BGA India Managing Director Anuj Gupta at agupta@bowergroupasia.com.

Best regards,

BGA India Team

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Managing Director

Anuj is a distinguished policy leader and strategist who has played a catalytic role across India’s government and private sector, guiding stakeholders through the country’s complex and evolving policy and investment landscape. As BGA’s India practice leader, he helps clients leverage the country’s rapid economic growth to advance their goals and strategies.  Anuj previously led public policy efforts for the Tata Group, India’s largest business conglomerate, where he advised more than 30 group companies on policy affairs strategy. His interventions directly influenced high-stakes outcomes across diverse sectors, including technology, finance and manufacturing.   Anuj spent a decade in the Indian and Abu Dhabi governments, where he ... Read More