India ranks third globally in renewable energy and installed solar capacity and fourth in wind power, reflecting strong policy support and rapid capacity addition, as highlighted in the Economic Survey.
Expansion has been driven by government initiatives like the National Solar Mission, PLI schemes, falling tariffs, and increased private-sector participation, with a target of 500 GW non-fossil fuel capacity by 2030.
Nearly 40 GW of renewable projects are stalled as state power discoms hesitate to sign power purchase agreements, creating a demand bottleneck that threatens future investments despite ample clean energy availability.
India has emerged as the third-largest country globally in overall renewable energy capacity and installed solar power, according to the Economic Survey tabled in Parliament. The achievement underscores the country’s rapid progress toward a greener energy mix and its commitment to climate action.
The Economic Survey highlights that India’s installed renewable energy capacity has witnessed robust growth over the past decade, driven by large-scale investments in solar, wind, bioenergy, and small hydro power. Solar energy has been a key contributor, with capacity expanding significantly due to government-led initiatives such as the National Solar Mission, production-linked incentives (PLI) for solar manufacturing, and the development of large solar parks.
As per the Survey, India now ranks fourth globally in wind energy capacity as well, reinforcing its position as a major renewable energy hub. The report attributes this progress to policy stability, declining renewable energy tariffs, improved grid integration, and increasing participation from the private sector.
The Economic Survey also notes that renewable energy plays a crucial role in India’s long-term development strategy, helping reduce dependence on fossil fuel imports, enhance energy security, and support sustainable economic growth. India has set an ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030, in line with its climate commitments under the Paris Agreement.
But Problems Exist
Despite the availability of large volumes of clean energy, buyer reluctance remains a major concern. State government-owned power distribution companies (discoms) have been hesitant to finalise renewable power purchase agreements (PPAs), even as the Centre pushes for a transition away from polluting coal-based power generation.
Nearly 40 gigawatts of renewable energy projects remain stalled due to states’ unwillingness to sign power sale agreements, according to a presentation made at a Ministry of New and Renewable Energy (MNRE) review meeting on February 5. These projects were awarded through the Solar Energy Corporation of India (SECI) and state-run power generators such as NTPC, NHPC and SJVN, but have been pending for over a year.
The delays are beginning to impact future investments in the renewable energy sector, with developers facing uncertainty despite completed auctions and available generation capacity. The Survey underscores that resolving discom finances, strengthening payment security mechanisms and ensuring timely PPA execution will be critical to sustaining growth.
