India's Renewable Power Output Grows 24.4% in H1 2025, Fastest Pace Since 2022

India's renewable power output surged by 24.4% in the first half of 2025, reaching 134.43 billion kilowatt-hours (kWh), marking the fastest growth rate since 2022, according to a Reuters analysis of government data. In June alone, the share of renewables excluding hydropower hit a record high of over 17% of the electricity mix.

This growth was driven primarily by a significant expansion in wind and solar capacity, with India adding 16.3 GW of such capacity in the first five months of the year. The country is expected to add a total of 32 GW of renewable capacity in 2025, up from about 28 GW in 2024.

Conversely, coal-fired power generation, which remains India’s dominant electricity source, declined nearly 3% in the first half of 2025 as overall power output growth slowed to 1.5%, down from 5.8% in 2024.

This decline is attributed to a milder summer due to an early monsoon and a slowdown in economic activity, which reduced coal demand and led to record-high domestic coal inventories and lower imports. The trend reflects a shift in India’s energy landscape, where renewable energy is gradually displacing fossil fuels.

India’s renewable energy ambitions remain ambitious, aiming for 500 GW of non-fossil fuel capacity-including hydro and nuclear-by 2030, nearly doubling the current 235.6 GW.

However, experts suggest that this target may realistically shift to 2032 unless there are significant advancements in grid modernization and investments in energy storage to better integrate intermittent renewable sources.

The country’s accelerated wind and solar installation efforts follow a period of stagnation that caused India to miss its 2022 target of 175 GW renewable capacity.

The combination of increased renewable output, particularly solar, and seasonal factors such as monsoon-driven hydroelectric generation, is expected to further reduce coal usage in the coming months.

This trend could result in a rare year-over-year decline in coal consumption, helping India reduce its greenhouse gas emissions while meeting growing electricity demand through cleaner sources.

However, coal and other fossil fuels are still projected to account for around 75% of India’s electricity generation in the near term, underscoring the ongoing energy transition challenges.

24% growth in Indian renewable output starts to change what a credible Scope 2 claim looks like - but the gap between installed capacity and actual dispatch is where most PPA structures still get their assumptions wrong. Our energy-transition and climate-action teams work with buyers navigating that gap, particularly on multi-year procurement strategy and disclosure alignment.