Non-Fossil Fuel Sources’ Share in Installed Generation Capacity Exceeds That of Fossil Fuel Sources
NEW DELHI: As on October 31, 2025 the India’s total installed generation capacity has reached 5,05,023MW, comprising 2,45,600 MW of fossil-fuel sources and 2,59,423 MW of non-fossil fuel sources (including 2,50,643 MW from renewable energy sources). The details of the country’s current composition of installed generation capacity, indicating the share of renewable and non-fossil fuel sources, are given in the Table below.
The Government of India has taken several steps and initiatives to promote and accelerate renewable energy capacity in the country to realize the commitment of 500 GW non-fossil energy capacity by 2030. These include, inter alia, the following:
(i) Inter-State Transmission System (ISTS) charges have been waived for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025, for Green Hydrogen Projects till December 2030 and for offshore wind projects till December 2032.
(ii) Standard Bidding Guidelines for tariff-based competitive bidding process for procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE (FDRE) projects have been issued.
(iii) Ministry of New and; Renewable Energy (MNRE) has issued Bidding Trajectory for issuance of RE power procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
(iv) Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
(v) Laying of new transmission lines and creating new sub-station capacity has been funded under the Green Energy Corridor Scheme for the evacuation of renewable power
(vi) To augment transmission infrastructure needed for a steep RE trajectory, a transmission plan has been prepared till 2032.
(vii) Scheme for setting up Solar Parks and Ultra Mega Solar Power projects is being implemented to provide land and transmission to RE developers for installation of RE projects on a large scale
(viii) Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been launched
(ix) To boost RE consumption, the Renewable Purchase Obligation (RPO) followed by the Renewable Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO, which is applicable to all designated consumers under the Energy Conservation Act 2001 will attract penalties on non-compliance. RCO also includes specified quantum of consumption from Decentralized Renewable Energy sources.
(x) “Strategy for Establishments of Offshore Wind Energy Projects” has been issued.
(xi) Green Term Ahead Market (GTAM) has been launched to facilitate the sale of Renewable Energy Power through exchanges.
(xii) To achieve the objective of increased domestic production of Solar PV Modules, the Govt. of India is implementing the Production Linked Incentive (PLI) scheme for High Efficiency Solar PV Modules. This will enable the manufacturing capacity of a Giga Watt (GW) scale in High Efficiency Solar PV Module. India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity capacity from non-fossil fuel sources in June 2025 – more than five years ahead of the target set under its Nationally Determined Contributions (NDCs) to the Paris Agreement. This significant milestone underscores the country’s steadfast commitment to climate action and sustainable development.
The impact of this achievement on India’s long-term energy transition roadmap is crucial towards the goal of combating climate change, keeping in view energy security, affordability and accessibility as critical inalienable priorities to ensure growth and development alongside the energy transition of the economy towards net-zero by 2070.
The major steps taken by India to diversify its Energy Portfolio through clean and safe sources are detailed below:
1. Nuclear power has huge potential to ensure long-term energy security and is vital for India’s clean energy transition towards Net Zero by 2070. It is a clean and environmentally friendly source of base load power which is available 24×7. The lifecycle emissions of nuclear power are comparable to those of renewables like hydro and wind. The Government of India has set an ambitious target of 100 GW nuclear power capacity by 2047. The following steps have been taken to diversify India’s energy portfolio through Nuclear Energy:
i. A dedicated Nuclear Energy Mission with an allocation of ₹20,000 crore has been launched to develop at least five indigenously designed Small Modular Reactors (SMRs) by 2033 and promote advanced nuclear technologies.
ii. Amendments to the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, are being taken up to encourage private sector investment.
iii. Bharat Small Reactors (BSRs) of 220 MW capacity based on India’s proven Pressurized Heavy Water Reactor (PHWR) technology are being upgraded for deployment in industrial hubs to support decarbonisation. BARC is also developing Small Modular Reactors for repurposing retiring coal stations and for remote-area applications.
iv. India’s fuel security is being enhanced through new uranium discoveries, including a significant discovery that would extend the life of the Jaduguda mine by over 50 years. Progress in the closed fuel cycle, such as milestones achieved in the Prototype Fast Breeder Reactor, will further support a sustainable fuel supply.
v. To accelerate capacity addition, NPCIL and NTPC have formed the joint venture ASHVINI for developing nuclear power plants within the existing legal framework.
2. Government of India, in September 2023, approved a Viability Gap Funding (VGF) scheme for the development of Battery Energy Storage Systems (BESS). BESS capacity of 13.22 GWh is under implementation with a budgetary allocation of Rs 3,760 Cr. under this scheme. Considering the increasing demand of BESS, the Ministry of Power, in June 2025, has approved another VGF scheme for the development of 30 GWh BESS capacity with financial support of Rs 5,400 Cr from the Power System Development Fund (PSDF).
3. The Ministry of Power has introduced a policy to promote Pumped Storage Projects (PSPs) to support renewable energy integration and grid stability. At present, 10 Pumped Storage Projects totaling 11,870 MW are under construction in the country.
4. Strategy for Establishments of Offshore Wind Energy Projects has been issued. Viability gap funding will be provided for harnessing offshore wind energy potential for initial capacity of one gigawatt.
5. Green Hydrogen Mission would contribute significantly to India’s efforts for decarbonization and also create opportunities for employment and economic development. The Mission targets setting up at least 5 MMT per annum of green hydrogen capacity with an associated renewable energy capacity of about 125 GW by 2030.
The details of the country’s current composition of installed generation capacity:
| Installed Generation Capacity of the country as on 31.10.2025 | |||
| Category | Installed Capacity (in MW) | % Share in Total | |
| Fossil Fuel | Coal | 2,18,258 | |
| Lignite | 6,620 | ||
| Gas | 20,132 | ||
| Diesel | 589 | ||
| Total Fossil Fuel | 2,45,600 | 48.6 | |
| Non-Fossil Fuel | Renewable Energy Sources | 2,50,643 | 49.6 |
| Hydro (including PSPs) | 50,348 | ||
| Wind, Solar & Other RE | 2,00,295 | ||
| Wind | 53,600 | ||
| Solar | 1,29,924 | ||
| BM Power/Cogen. | 10,757 | ||
| Waste to Energy | 856 | ||
| Small Hydro | 5,159 | ||
| Nuclear | 8,780 | 1.74 | |
| Total Non-Fossil Fuel | 2,59,423 | 51.37 | |
| Total Installed Capacity | 5,05,023 | 100.0% | |
This information was given by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply in the Rajya Sabha on December 1, 2025.
