Powering a Green Bharat

India’s renewable energy surge is as much about jobs, health, and resilience as it is about electrons.

Energy in India is far more than wires, turbines or pipelines. Its true worth lies in the lives it touches and the opportunities it creates. As the world’s most populous democracy charts an ambitious course in renewable energy, it is signalling not just a commitment to sustainability, but a pledge to self-reliance and inclusive development. From sprawling solar farms in Rajasthan to wind corridors in Tamil Nadu, India is forging a resilient energy future that is as much social as it is technological.

India’s electricity journey mirrors its economic evolution. From a modest 1.36 GW at independence in 1947, the nation’s installed capacity now exceeds 476 GW. Early efforts relied on private enterprise, but the post-independence period saw state-led hydroelectric initiatives take the lead. The 1970s brought nationalisation, linking energy production to economic priorities and expanding thermal power to 16 GW. Liberalisation in the 1990s welcomed private capital, with coal dominating, while the early 2000s witnessed a push into nuclear and renewable technologies. Today, decades of deliberate planning have elevated India into the top echelons of global power producers.

Star performers

Renewables have been the star performers of the last decade. Electricity capacity has surged 60 percent, with non-hydro renewables - solar, wind and biomass - accounting for 46 percent of total capacity. Solar leads at nearly 98 GW, followed by wind (48 GW) and large hydro (52 GW). Regional specialisation is notable with Gujarat, Rajasthan and Maharashtra shining in solar energy; Tamil Nadu and Karnataka dominating wind energy and northern states offering great hydro potential as the coal-rich eastern regions pivot toward cleaner options. India ranks fifth globally in solar capacity and third in generation, targeting nearly 100 GW by 2030. Meanwhile, hydropower aims to reach 67 GW by 2032, and bioenergy continues to expand under national programs despite implementation challenges.

Coal, however, remains entrenched. Coal-fired plants generate 74 percent of electricity, though capacity growth is slowing. Projections suggest a modest rise from 210 GW in 2021–22 to 260 GW by 2031–32. The environmental consequences of this are stark as emissions of SO₂, NOₓ, and particulate matter compromise air quality and public health while India accounts for 8 percent of global energy-sector CO₂ emissions. Its coal-heavy grid is 15 percent more carbon-intensive than China’s, complicating the nation’s decarbonisation ambitions.

Clean energy

Transitioning to renewables is therefore not just an environmental imperative but a strategic one. Clean energy enhances security by reducing fossil fuel imports, stabilises prices, and strengthens independence. It creates jobs, lowers costs, improves air quality, and fortifies the grid. Central government initiatives have accelerated this transition: the National Solar Mission, PM-KUSUM for solar-powered farms, rooftop solar programs under PM Surya Ghar, and a Rs. 24,000 crore PLI scheme for domestic solar manufacturing are reshaping the sector.

Solar parks and the Green Energy Corridors complement generation efforts by providing shared infrastructure and strengthening transmission networks. So far, 55 parks totalling 39.9 GW have been approved, with over 12 GW commissioned. Transmission enhancements, including the GEC, are crucial to accommodate intermittent renewable energy and avoid bottlenecks. Currently, over 50 GW of potential capacity remains stranded. Energy storage is another pinch point: India’s 6 GW of installed storage falls far short of the 61 GW needed by 2030. Scaling storage will not only stabilise the grid but also optimise costs and defer transmission investments.

Decentralised renewable energy (DRE) is a particularly transformative development. Solar, wind, and biomass projects close to consumption points reduce transmission losses, improve reliability, and enhance access in remote regions. Rooftop solar alone has reached 17 GW, with a 2027 target of 40–45 GW. The PM JANMAN initiative is electrifying tribal households, demonstrating the social impact of energy policy. Maharashtra leads with 200 MW under long-term agreements, ensuring tariff stability and broader adoption.

Policy reform has underpinned India’s renewable surge. Renewable Purchase Obligations compel utilities to source a defined share of green power, while the Green Energy Open Access Rules simplify trading. Foreign investment is encouraged through 100 percent FDI under the automatic route, and inter-state transmission charges have been waived for projects commissioned by June 2025. These steps, coupled with manufacturing incentives, are reducing reliance on imports and bolstering domestic capacity.

The results are tangible. India has surpassed its 2030 non-fossil target, with solar tariffs dropping to Rs. 2.5 per unit, 70 GW of domestic manufacturing capacity, over 101,000 new jobs, and $19.98 billion in foreign investment. Environmental gains include cleaner air, lower CO₂ emissions, and energy access for remote communities. Yet ambitions remain high: the nation aims to cut carbon intensity by 45 percent by 2030 and achieve net-zero emissions by 2070. Success will hinge on securing critical minerals, advancing storage and green hydrogen technologies, and fostering innovation in manufacturing, digitalisation, and smart grids.

India’s renewable energy transition is at a pivotal moment. Falling short risks shortages, higher costs, and unmet climate goals. Conversely, sustained progress promises energy security, economic opportunity, and environmental resilience. Achieving a ‘Viksit Bharat 2047’ demands not just top-class infrastructure but more importantly vision, technology, investment, and inclusive growth. If it succeeds, India will not merely light homes and power industries but will lead the global clean energy movement, proving that energy, at its best, transforms society.

(The author is a Chartered Accountant with a leading company in Mumbai. Views personal.)