India’s Clean Energy Capacity Outpaces Supply in 2025

India’s clean energy capacity reached 50% of its 300 GW total in 2025, but supply lags at under 30%, highlighting grid and storage challenges. This article examines the capacity-supply gap, its impacts, and strategies to align with India’s 500 GW renewable target by 2030.

India’s renewable capacity grew to 150 GW in 2025, with solar at 85 GW and wind at 45 GW, driven by $10 billion in annual investments. However, only 90 GW is consistently supplied due to grid constraints and intermittency, meeting 28% of demand. The National Solar Mission and PM Suryaghar Yojana drive capacity, but coal still powers 70% of electricity, emitting 1 billion tonnes of CO2 annually.

Economically, renewables employ 500,000 workers, with Gujarat and Rajasthan leading solar growth. The sector attracts $15 billion in FDI, but grid upgrades require $5 billion annually, straining budgets. Critics argue that over-emphasizing capacity over supply inflates achievements, as 20% of solar projects face delays due to land and transmission issues.

Environmentally, renewables cut 100 million tonnes of CO2 yearly, supporting India’s net-zero 2070 goal. Battery storage, at 2 GW, mitigates intermittency, but scaling to 50 GW by 2030 needs $20 billion. Critics highlight that manufacturing solar panels and batteries emits 10 million tonnes of CO2, offsetting gains unless powered by renewables.

Challenges include grid infrastructure and financing. India’s 400,000 km transmission network needs 100,000 km more to integrate renewables, costing $10 billion. Small developers face funding gaps, with 30% of projects delayed. The CEA’s weather station mandate for 50 MW plants improves forecasting but adds costs, deterring investment.

Community engagement ensures inclusion. Training programs upskill 100,000 workers for green jobs, while campaigns promote rooftop solar, with 10 million households enrolled. Critics note that rural areas, with 15% of capacity, need better access to subsidies.

Globally, India’s renewable push aligns with China’s 1,200 GW capacity. Collaboration with IRENA could enhance storage technology, but critics argue that coal reliance undermines global commitments. Policy coherence is critical to avoid stranded assets.

Long-term success requires investment and innovation. Digital platforms monitoring grid performance and $1 billion in R&D for advanced batteries will close the gap. Government incentives, like PLI for storage, are vital, but critics urge faster coal phase-out.

Conclusion

India’s 50% clean energy capacity in 2025 is a milestone, but the 30% supply lag demands grid upgrades and storage solutions. Strategic investments and policy support will ensure alignment with sustainable energy goals.

Source: Outlook Business