India’s Energy Transition

Context

India’s power sector is undergoing a major transformation, with installed power capacity reaching approximately 552 GW. The transition aims to meet rising energy demand while reducing carbon intensity, strengthening energy security, and promoting a low-carbon economy.

About the Energy Landscape

Renewables & Clean Power

Foundational Shift:

Non-fossil fuel sources account for more than 54% of India’s installed generation capacity, strengthening its position as a leading renewable energy producer.

Solar Generation

India has approximately 164.59 GW of solar capacity, making solar the largest component of its clean-energy portfolio. India is also among the world’s fastest-growing solar markets.

Wind Energy

India has around 58.14 GW of installed wind capacity, ranking fourth globally. Its domestic wind manufacturing capacity is about 24 GW, with 70–80% of components sourced domestically.

Bio-Power

Grid-connected bio-energy contributes approximately 11.75 GW, supported by decentralized Compressed Bio-Gas and Bio-CNG facilities.

Geothermal Resources

India has an estimated untapped geothermal energy potential of around 10,600 MW.

Conventional Power & Supply Security

Thermal Base

Coal provides nearly 55% of primary energy and more than 70% of electricity generation. Domestic coal production reached approximately 1,040.08 million tonnes, reducing thermal power plant coal imports by 27.4%.

Refining & LPG Access

India operates 22 major refineries and is among the world’s leading oil-refining nations. LPG coverage has expanded significantly, reaching approximately 107.2%.

Nuclear Power & Frontier Innovations

Nuclear Expansion

India’s nuclear capacity stands at approximately 8.78 GW, with a long-term target of 100 GW by 2047.

Advanced Reactors

The 500 MWe Prototype Fast Breeder Reactor at Kalpakkam achieved operational criticality, marking a major step in India’s three-stage nuclear programme and nuclear fuel-cycle closure.

Green Hydrogen Ecosystem

India has developed more than 8,000 tonnes per annum of green hydrogen production infrastructure. India’s first domestically developed hydrogen fuel-cell train has been rolled out on the Jind–Sonipat corridor.

Key Policy Interventions & Initiatives

PM-Surya Ghar: Muft Bijli Yojana

• Targets rooftop solar systems in 1 crore households.
• More than 51.58 lakh homes have been connected.
• Around 19 lakh households have achieved near-zero electricity bills.

Pradhan Mantri Surya Sarovar Yojana

• Targets 5,000 MW of floating solar photovoltaic capacity.
• Includes approximately 10,000 MWh of integrated energy storage.

Surface Coal/Lignite Gasification Scheme

• Promotes conversion of coal and lignite into cleaner gaseous fuels.
• Targets 75 million tonnes per annum of utilization and a 100 million tonne conversion milestone by 2030.

SHANTI Act

• Provides a statutory framework for private-sector participation in nuclear power.
• Introduces a liability cap of 300 million Special Drawing Rights.
• Provides a statutory framework for nuclear safety regulation.

Samudra Manthan Initiative

• Strengthens offshore hydrocarbon exploration through seismic mapping and ultra-deepwater drilling.
• Supports coastal infrastructure and reduces dependence on imported hydrocarbons.

GOBARdhan Scheme

• Promotes conversion of cattle dung and organic waste into Compressed Bio-Gas and other useful resources.
• Supports the rural bioeconomy and clean-fuel supply.

Significance of the Transition

Strengthened Energy Independence

Expanding renewable, nuclear, bio-energy, and other non-fossil resources can reduce dependence on imported hydrocarbons and improve energy security.

Grid Modernization & Decarbonization

Solar, wind, storage, nuclear power, and modern transmission infrastructure can support decarbonization while maintaining grid reliability.

Industrial Manufacturing Ecosystems

Domestic manufacturing of solar modules, wind turbines, batteries, and hydrogen technologies can strengthen supply chains, create jobs, and reduce imports.

Universal Energy Inclusion

Rooftop solar, decentralized renewable energy, and clean cooking fuels can reduce household energy costs and improve energy access, especially in rural areas.

Key Challenges

Intermittent Power Integration

Weather-dependent solar and wind generation creates grid-balancing challenges, increasing the need for large-scale storage, flexible generation, and accurate forecasting.

Baseload Dependence on Thermal Power

Coal remains important for peak demand and grid stability, making a rapid and disruption-free transition away from thermal power difficult.

Capital Intensity & Upfront Costs

Large investments are required for energy storage, transmission, offshore exploration, nuclear power, and emerging clean-energy technologies.

Supply Chain Vulnerabilities

Clean-energy technologies depend on critical minerals, rare-earth elements, advanced components, and specialized manufacturing, making the sector vulnerable to global supply disruptions.

Way Forward

Accelerated Storage Deployment

Expand Battery Energy Storage Systems and pumped-storage hydropower to manage renewable fluctuations and improve grid reliability.

Upgrading Transmission Architecture

Develop high-voltage green-energy corridors to transmit renewable electricity from generation zones to major industrial and urban demand centres.

Public-Private Partnerships in Clean Technology

Mobilize private investment in advanced nuclear technologies, Small Modular Reactors, green hydrogen, storage, and distribution infrastructure.

Critical Mineral Security

Build international partnerships while strengthening domestic exploration, processing, substitution, and recycling of critical minerals.

Conclusion

India’s energy strategy balances energy security with the transition toward cleaner power. While coal remains important for baseload supply, rapid growth in solar, wind, bio-energy, nuclear power, and green hydrogen is reshaping the energy sector. Strengthening storage, transmission, domestic manufacturing, critical-mineral security, and private investment will be essential for a resilient, self-reliant, affordable, and sustainable energy system.