India reaches clean power capacity target despite coal reliance

Stay informed with free updates

Simply sign up to the Renewable energy myFT Digest — delivered directly to your inbox.

India said it had reached its Paris Agreement target of 50 per cent of non-fossil fuel power capacity five years ahead of its 2030 pledge, even as the world’s most populous country and third-biggest carbon emitter remains heavily reliant on coal for power generation.

The milestone indicates the concerted push by the Modi government for new clean power installation, despite the large gap between installed capacity and power generation.

Pralhad Joshi, India’s new and renewable energy minister, made the announcement in a social media post. “Historic Green Leap for India!” Joshi wrote. “India achieves 50 per cent non-fossil fuel capacity — 5 years ahead of its 2030 target.” 

Joshi’s ministry said that of India’s total installed power capacity of 484.8 gigawatts, 242.8GW came from non-fossil fuels.

Analysts welcomed the news while noting how far the developing country had to go to meet its voracious energy needs.

The Energy Institute’s Statistical Review of World Energy shows that India produced 2,030 terawatt-hours of electricity in 2024. Of this, 240.5 TWh came from renewables, while a record level of 1,517.9 TWh came from coal. 

“Is it a good accomplishment? Sure,” said Rohit Chandra, assistant professor at the School of Public Policy at IIT Delhi. “A lot more needs to be done to address climate change,” he added. “What matters is actual power generated.” 

The drive by Prime Minister Narendra Modi’s government for solar and wind power installations has included direct subsidies and tax breaks. 

Increasing renewable energy dovetails with its push to create manufacturing jobs, promote an industrially “Self-Reliant India”, and fend off competition from Chinese imports. 

Officials acknowledge, however, that India has much work ahead in integrating installed capacity into the country’s existing grid. Many state utilities are under financial duress and continue to opt for coal as a steadier source of power than renewables such as solar.

PM Prasad, chair of state-owned Coal India, told the Financial Times last month that it was reopening more than 30 mines and launching up to five more on greenfield sites this year, saying the country’s renewables sector was not yet able to meet the country’s growing energy demand. 

India’s power sector was rocked by scandal last year when the US Department of Justice charged eight executives from Adani Green, Azure Power, and CDPQ, a Canadian institutional investor, with conspiring to pay $265mn in bribes to Indian state government officials to secure solar power contracts. The Securities and Exchange Commission announced civil charges in connection with the same alleged scheme. Adani and Azure have denied wrongdoing. CDPQ has said it is aware of charges against certain former employees and that it is co-operating with US authorities.