India’s energy landscape is turning green fast. A report by the Institute for Energy Economics and Financial Analysis (IEEFA), released on April 28, 2025, shows renewable energy made up 86% of new power capacity added in FY25. This surge highlights India’s clean energy push. Here’s what the report says and why it’s a big deal.
A Renewable Dominance
In FY25, India added 26.2 GW of new power capacity. Renewables accounted for 86% of that, totaling 22.5 GW. Solar led with 18.6 GW, followed by wind at 2.9 GW. “Renewable energy accounted for 86 per cent of new power capacity addition in FY25,” the IEEFA report stated. This growth outpaced coal, which added just 3.7 GW, showing a clear shift in priorities.
Why It’s Happening
Several factors are driving this boom. Government policies, like the PM Suryaghar Yojana, are boosting solar adoption. Falling costs of solar and wind tech make them more affordable. India’s climate goals are also key—the country aims for 500 GW of non-fossil fuel capacity by 2030. “Solar remained the biggest driver of new capacity addition,” the report noted, reflecting the country’s sunny advantage.
Key Highlights
- Total Addition: 26.2 GW of new power capacity in FY25.
- Renewable Share: 86%, or 22.5 GW.
- Solar Lead: 18.6 GW added, wind at 2.9 GW.
- Coal Growth: Only 3.7 GW added.
Challenges in the Mix
Renewables are winning, but hurdles remain. Grid integration needs upgrades to handle 22.5 GW of new clean power. Storage systems, like batteries, are crucial to manage solar and wind’s variability. Land acquisition for projects can also slow things down. Still, India’s progress is strong—220.10 GW of installed renewable capacity by March 2025, per MNRE data, keeps the momentum going.
The Bigger Picture
India’s renewable growth fits a global trend. A 2024 IEA report says global renewable capacity must triple by 2030 to meet climate goals. India’s 86% share in FY25 shows it’s on track. The country added 25.2 GW of solar in 2024, per Mercom, and FY25’s 18.6 GW keeps the pace. This shift cuts emissions and reduces coal reliance, supporting India’s net-zero target by 2070.
What’s Next?
The IEEFA report sees more growth ahead. With 234 GW of renewable projects in the pipeline, per MNRE, India could hit its 500 GW goal early. Solar’s 18.6 GW in FY25 shows its dominance, but wind at 2.9 GW needs a push. Policies and investments in storage and grids will be key to sustain this 86% renewable share in future years.
India’s FY25 renewable boom is a bright spot. The country is powering up sustainably with 86% of new capacity from clean sources. Solar and wind are leading the charge, paving the way for a greener energy future.
