The Indian government announced that the country’s total installed capacity for solar photovoltaic (PV) energy has reached 85.47 gigawatts (GW), alongside a wind energy capacity of 46.65 GW.
The government is actively promoting the development of renewable energy (RE) through a range of measures designed to incentivize industries to shift from conventional coal-based thermal energy to renewable sources. Shripad Yesso Naik, Minister of State for New and Renewable Energy, highlighted these initiatives in the Rajya Sabha, noting that the country aims to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030.
To support this goal, the government has introduced several policies, including allowing 100% foreign direct investment (FDI) in the renewable energy sector through the automatic route. Additionally, the Ministry of New and Renewable Energy has waived Interstate Transmission System (ISTS) charges for the interstate sale of solar and wind energy for projects commissioned before June 30, 2025, as well as for Green Hydrogen projects until December 2030 and marine wind projects until December 2032.
The government has also announced a Renewable Purchase Obligation (RPO) pathway until 2029-30, which includes a separate RPO for decentralized renewables. A project development cell has been established to attract and facilitate investments in the sector.
Other government schemes supporting renewable energy development include:
- Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)
- PM Surya Ghar Muft Bijli Yojana
- National High Efficiency Solar Photovoltaic Module Programme
- National Green Hydrogen Mission
- Offshore wind development project of 1 GW
According to the Economic Survey 2023-2024, India has developed robust infrastructure to attract FDI in greenfield renewable energy projects. Major U.S. and European companies, including First Solar, Vestas, and Scatec, have established operations in India to capitalize on the growing demand for green technologies.
Experts anticipate that the upcoming Union Budget will further guide India’s transition to sustainability, with a focus on energy transition pathways, climate financing, improved water resources management, and measures related to irrigation and flood management. These initiatives are expected to bolster India’s efforts to combat climate change impacts.