In the first half of 2025, India achieved a significant milestone by adding a record 22 gigawatts (GW) of renewable energy capacity.
This represents a substantial 57% increase compared to the 14.2 GW installed during the same period last year, according to a latest release from Rystad Energy.
New capacity additions consist of 18.4 GW of solar, 3.5 GW of wind, and 250 megawatts (MW) of bioenergy, which is derived from plant and animal waste.
This marks the country’s highest-ever addition in any six-month period.
Developers swiftly capitalised on the government’s Interstate Transmission System (ISTS) charge waiver, a key factor driving the surge, Rystad said.
This waiver, starting at 25% and progressively increasing to full implementation by June 2028, significantly reduced project costs and incentivised immediate action from developers.
India is nearing its objective of achieving 50% of its installed power capacity from clean energy sources, having already reached 234 GW, which includes substantial hydropower projects.
Fossil fuels still prominent
Although this expansion is beneficial for reducing emissions, fossil fuels still constitute the majority of the nation’s actual energy consumption, providing approximately 75% of the electricity generated in the first half of the year through coal, oil, and gas-fired facilities.
Nuclear power is gaining prominence, marked by the connection of Unit 7 of the Rajasthan Atomic Power Project (a 700-MW unit) to the northern grid and the government’s approval for India’s inaugural small modular reactor (SMR) in Bihar.
“However, reliance on coal remains a significant challenge and the role of nuclear energy continues to be debated due to concerns over costs, safety and waste management,” the Norway-based energy intelligence company said.
“India is not yet undergoing a true energy transition; instead, it is focusing on building up installed capacity from both conventional and renewable energy sources to ensure energy security,” Sushma Jagannath, vice president of renewables and power research at Rystad Energy, said in the release.
Without urgent action to improve affordability and sustainability, particularly through grid upgrades and energy storage, coal will remain central to electrification efforts, jeopardizing progress toward India’s net-zero goals.
Surge in capacity
India experienced a significant surge in renewable energy capacity during the first half of the year, more than doubling its existing capacity.
This growth in renewable energy capacity was accompanied by a notable increase in battery energy storage systems (BESS).
Developers were awarded 5.4 GW of co-located solar-BESS projects and 2.2 GW of standalone BESS projects, representing the largest allocation of BESS in the country’s history.
The strong participation across auctions reflects a growing emphasis on grid stability and renewable integration, with Rystad Energy projecting accelerated growth in the sector over the coming years.
Average quoted tariffs stood at around INR 4,000 ($48.02) per megawatt-hour (MWh) for standalone BESS and INR 3,208 ($38.50) per MWh for collocated solar-BESS projects – a downward trend in pricing that could encourage more developers to pursue integrated installations over standalone solar.
Allocations
Several key developers have secured significant capacities in the recent allocation.
Jindal Group led the collocated solar and BESS (Battery Energy Storage System) category with 990 MW.
NTPC and ReNew each obtained 900 MW in the same category.
In the standalone BESS segment, JSW Energy was allocated 625 MW. Reliance Power also secured 525 MW, but in the collocated capacity.
Notably, Adani Green, traditionally focused on standalone solar and wind, secured a 510 MW collocated solar and BESS project, signalling a strategic shift.
Western Indian states continue to lead the nation’s renewable energy deployment.
Rajasthan boasts the highest installed capacity at 37.4 GW, primarily from 32 GW of solar and 5.2 GW of onshore wind due to abundant solar irradiance and extensive desert landscapes, Rystad said.
Gujarat is a close second with 35.5 GW, comprising 21.5 GW of solar and 13.8 GW of wind.
Tamil Nadu ranks third, with significant contributions from wind (11.8 GW) and solar (10.6 GW), and is also a major player in bioenergy, accounting for 1 GW of the national 11.6 GW total.
Other states with notable onshore wind capacities include Karnataka (7.7 GW), Maharashtra (5.3 GW), Andhra Pradesh (4.4 GW), and Madhya Pradesh (3.2 GW).
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