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India is poised to achieve its ambitious 2030 energy goals if the country maintains its current pace of renewable energy expansion, according to a new report from Global Energy Monitor (GEM). The report highlights record-breaking renewable energy growth in 2024 and outlines the trajectory needed to reach the government’s 500 GW non-fossil fuel capacity target by the end of the decade. Record Renewable Growth in 2024 In 2024, India added a record 35 gigawatts (GW) of new power capacity, with renewables accounting for nearly three-quarters of this expansion. Solar photovoltaics contributed the majority of the new installations, reinforcing India’s position as a key player in the global clean energy transition. According to GEM’s Global Integrated Power Tracker, if India continues to install wind and solar at the same rate as in 2024, its total renewable energy capacity could grow by 80% to 378 GW by 2030. Additionally, the country has 24 GW of hydropower capacity slated for commissioning by the end of the decade. However, India would still be 100 GW short of its 500 GW target. To bridge this gap with wind and solar, annual capacity additions must increase by 15% year-on-year. GEM’s analysis suggests that India’s post-pandemic wind and solar growth rates have been slightly above this level, indicating that achieving the 500 GW target is possible if momentum is sustained. Renewables Set to Overtake Coal Capacity The report also indicates that wind, utility-scale solar, and hydropower projects in development—including those in the announced, pre-construction, and construction phases—are expected to surpass the country’s operating coal capacity within the next two years. Currently, utility-scale solar projects make up nearly half of all renewable energy developments, with more solar capacity under construction than coal. This shift underscores India’s increasing commitment to clean energy. Challenges in Reducing Coal Dependency Despite the strong growth in renewables, the report notes that fossil fuels still dominate India’s power generation mix. In 2024, renewables contributed only one-fifth of the total increase in power generation, while fossil power accounted for over two-thirds. A major challenge remains the lower utilization rates of wind and solar compared to coal. On average, wind and solar operate at 17–22% capacity throughout the year, whereas coal-fired power plants maintain a 70% utilization rate. This disparity means a significant scale-up in renewables is needed to displace coal’s dominance. James Norman, Project Manager for the Global Integrated Power Tracker, emphasized the importance of sustaining the current momentum. “The impressive growth of renewables in the last year, especially solar, shows how serious India is about its climate targets. The clean energy transition is well underway, but without continued and sustained growth of wind and solar, coal will continue to reign supreme,” he said. Outlook for India’s Clean Energy Transition With rapid renewable energy expansion and growing government support, India is on a potentially transformative path towards achieving its 2030 clean energy goals. However, maintaining high growth rates and further increasing investment in wind and solar will be critical to reducing dependence on coal and ensuring long-term energy sustainability. |
