India, a Leading Coal Power User, Advances Significantly in Clean Energy Adoption: Here’s How

BENGALURU – As one of the world’s top carbon-emitting countries, India is also taking significant steps to tap into solar, wind, and other renewable energy sources.

In India, the world’s most populous country, coal remains the primary source of electricity, despite being one of the most polluting energy types. However, coal’s share has been decreasing, from 60% of installed power capacity 11 years ago to under 50% now, as reported by India’s power ministry.

Meanwhile, India achieved its greatest increase in clean energy during the fiscal year from April 2024 to April this year, adding 30 gigawatts, enough to supply power to nearly 18 million Indian homes.

With a growing middle class and skyrocketing energy needs, how fast India can move away from coal and other fossil fuels, such as gasoline and oil, could have a large impact on global efforts to confront climate change.

Here is a snapshot of India’s clean energy transition and some of the challenges.

Renewable energy is now the most economical option

Solar is now half the cost of power from new coal-powered plants. Availability of cheap components and many sunny days each year in India are some reasons experts say installed solar power increased 30 times in the last decade.

“Solar power is the cheapest it’s ever been,” said Ruchita Shah, an energy analyst at climate think-tank Ember. Shah added that dropping costs for energy storage, in the form of batteries, means that renewable power will be the “new normal,” even when the sun doesn’t shine or the wind doesn’t blow.

India has nearly 170 gigawatts of renewable energy projects in the pipeline, which are expected to be completed in the next few years.

“I have no doubt that India will reach its target of 500 gigawatts by 2030,” said Raghav Pachouri, an energy expert at Vasudha Foundation, a New Delhi-based think-tank.

Government policies and private investments push renewables

Experts say the growth in renewables is being spurred by India’s plans to add approximately 50 gigawatts of non-fossil fuel power capacity every year for the next five years and for clean power to provide 50% of the nation’s energy by the decade. When burned, fossil fuels let off greenhouse gases like carbon dioxide, the main driver of climate change.

A 2022 law that made electricity cheaper for companies choosing to buy clean power, the federal government’s recommendation that state utilities buy more renewable power and a 2023 government plan to invest $452 million have all catalyzed investments in renewables.

India has the fourth highest amount of clean power installed in the world and government officials said $81 billion has been invested in the renewable energy sector in the last decade. Multiple large-scale renewable power projects have begun operations or are under construction, including one of the world’s largest wind and solar power farms.

“We’ve seen domestic manufacturing capacity, at least when it comes to modules for solar panels, increasing,” said Madhura Joshi, a senior energy analyst at the European think-tank E3G.

Still, renewables are underutilized

Despite the rapid growth, challenges persist. While non-fossil fuel sources now comprise 45% of India’s total installed capacity, their share in actual electricity generation stood at 24% last year. Coal remains the dominant source, accounting for 75% of electricity generation.

The share of solar, wind, small hydro power and biomass in India’s electricity generation mix stood at 12%, double what it was in 2014 but still lower than expectations by this time, according to a report by New Delhi-based think-tank, the Centre for Science and Environment.

Installed capacity is growing, but power generation from renewables needs to be optimized and integrated effectively into the grid, the report found.

At a clean energy crossroads

A recent report by the nonprofit clean energy think-tank, RMI, found that electricity demand is expected to triple by 2050 — driven by more electric vehicles, air conditioners and industrial growth.

Acquiring land for clean energy projects remains a challenge. India also needs to rapidly build robust electricity transmission infrastructure and energy storage facilities to continue increasing clean power capacity.

“India is expected to become the world’s third-largest economy in a few years, and I think we will need to adopt renewable energy to do this. There is no option for us because fossil fuels can’t keep pace” with energy needs, said Deepak Thakur, chief executive officer of Mumbai-based renewable energy company, Mahindra Susten.

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