India Accelerates Green Growth as U.S. Retreats and Australia Sets 2035 Power-Switch Deadline

India is increasingly emerging as a global leader in clean energy, particularly in the realms of solar power, wind farms, and broader renewable energy deployment. While the United States pivots in its own way and Australia enshrines a 2035 power-switch deadline, India is surging ahead with ambitious targets and deep structural shifts. In this blog post we’ll explore how clean energy is taking centre-stage in India’s transition, what the current status of renewable energy is, how the country is transitioning from fossil fuels, and what the path ahead for renewable power generation looks like.

Introduction to Clean Energy in India

India has entered a breakthrough era in its energy transformation. Under the leadership of Narendra Modi and driven by the goals laid out under the Paris Agreement and other climate-action frameworks, the country is doubling down on its ambition to shift away from traditional fossil fuels toward a clean power future.

Here are some key context points:

• The government has set a target of 500 GW of non-fossil fuel capacity by 2030.

• India aims not just to install capacity but to become a global leader in solar deployment and wind energy — positioning itself competitively with China and the EU in the clean-energy race. (Press Information Bureau)

• Clean energy is expected to contribute not just to emissions reduction but also to India’s economic growth, job creation, and energy security.

Why this matters

• Fossil fuels (especially coal) have been the backbone of India’s energy sector for decades. The shift to renewables means less dependence on coal-fired power plants, fewer greenhouse-gas emissions, improved air quality, and better public health.

• As the cost of solar and wind continues to fall globally, India’s large-scale deployment can lower power costs, improve grid flexibility, and unlock new industries (manufacturing of solar modules, wind turbines, storage, etc.).

• On the global stage, as the U.S. and other countries recalibrate climate efforts and Australia sets a clear target for 2035, India’s proactive posture signals to the world that the “Global South” is ready to lead in clean power.

In short: Clean energy in India is no longer a marginal add-on. It’s becoming a central pillar of the country’s future.

Current Status of Renewable Energy

India’s progress in the renewable energy sector has been impressive—but the journey still has many challenges and plenty of upside.

Installed Capacity & Growth

According to the Ministry of New and Renewable Energy (MNRE):

• As of 30 September 2025, India had installed 127,332 MW of solar power and 53,123.80 MW of wind power.

• The country’s estimated renewable energy potential (solar + wind + others) is around 2.1 million MW (2,109,655 MW) as of March 2024. (SolarQuarter)

• In the first half of 2025, India added a record ~22 GW of renewable capacity (18.4 GW solar + 3.5 GW wind) – a 57% jump over the same period last year. (Rystad Energy)

Contributions & Mix

• Solar power: In April 2025, India generated ~15,811.82 million units (MU) from solar alone, representing ~66.3 % of the total renewable energy generation (excluding large hydro) that month. Wind contributed ~6,330.71 MU (~26.5 %). (SolarQuarter)

• Renewable power is steadily increasing its share of installed capacity: According to a study from the National Renewable Energy Laboratory (NREL), the 160 GW of solar + wind capacity could serve ~22 % of India’s power demand, showing that variable renewables are already making a material difference. (nrel.gov)

Progress vs. Target

India’s target of 500 GW of non-fossil capacity by 2030 is bold. To illustrate:

Metric	Recent Data	Notes
Installed renewable (excluding large hydro) capacity as of March 2025	220.10 GW (Press Information Bureau)	Indicates significant progress
Renewable potential (solar + wind etc)	~2.1 million MW (SolarQuarter)	Shows the theoretical upside is much higher
Solar + Wind contribution to generation	~66% solar, ~26.5% wind for renewables in April 2025 (SolarQuarter)	Demonstrates renewables driving real output

Key Drivers

• Solar deployment: India’s solar module manufacturing capacity jumped from ~38 GW to ~74 GW in FY 2024-25. (Press Information Bureau)

• Wind industry growth: India is already ranked 4th globally in installed wind capacity. (Ministry of New and Renewable Energy)

• Policy momentum: Auction-based mechanisms, incentives for rooftop solar, state-level reforms (e.g., virtual net-metering) are helping spur growth.

Transitioning from Fossil Fuels

Shifting from a fossil-fuel dominated energy system to one led by renewable power is a complex process—but India is actively engaged in it.

The fossil fuel legacy

Coal-fired power plants have historically been the backbone of India’s electricity system. They provide dispatchable power, have existing infrastructure, and support large-scale industrial demand. However, the environmental and climate impacts are significant: emissions, air pollution, water usage, and land impacts.

Why the shift is accelerating

• The cost of solar PV and onshore wind has fallen dramatically worldwide, making them increasingly cost-competitive with fossil generation (even without subsidies).

• India’s climate commitments under the Paris Agreement and the goal of achieving energy security (reducing imported fuels) align with scaling up renewable energy.

• There are co-benefits: improved air quality, reduced health costs, new green-jobs opportunities, and new industries (e.g., manufacturing of solar/wind components, battery storage).

• The government has signalled that no new coal-fired capacity (beyond the ~50 GW already under construction) is envisaged as part of its 2030-vision. (Wikipedia)

Challenges and practical issues

• While installed capacity of renewables is growing, actual generation from fossil fuels remains dominant in many regions—because coal plants provide base-load and are dispatchable, unlike variable solar/wind. For instance, the NREL study pointed out that coal still plays a key role in balancing the grid. (nrel.gov)

• Grid integration becomes more challenging as the share of variable renewables grows: issues of forecasting, transmission, storage, and dispatchability become critical.

• Some fossil-fuel infrastructure is still planned: According to recent news, India still plans to expand coal-fired capacity by ~80 GW by 2032 to meet rising demand. (Reuters)

• Funding, land-acquisition, and transmission bottlenecks remain hurdles. A report by the Institute for Energy Economics and Financial Analysis (IEEFA) cited project cancellations and undersubscription in tenders as risks. (Reuters)

The transition in narrative

India is not simply replacing all coal with renewables overnight. What we’re seeing is a dual process:

• Rapid addition of renewable capacity (solar and wind).

• Gradual phase-down or more efficient use of coal plants, plus expansion of storage and grid modernisation to enable variable renewables. In doing so, India is forging a low-carbon growth path that complements economic development.

Renewable Power Generation: Solar, Wind & Beyond

The generation of clean power from renewables like solar and wind is the operational backbone of this transition.

Solar power

• India enjoys high solar insolation across large swathes of territory, especially in western and southern states, offering excellent conditions for solar PV deployment.

• Solar capacity in India has surged: for example, one source notes that solar represented ~30-fold growth from ~2.5 GW in 2014 to ~94.16 GW by November 2024. (Invest India)

• For April 2025, solar alone generated ~15,811.82 MU, ~66.3 % of all renewable generation (excluding large hydro) in that month. (SolarQuarter)

• Large solar parks are being built, and rooftop solar is scaling up too. The push for domestic manufacturing of modules is reducing import dependence.

Wind power

• India’s wind potential is huge: ~1,163,856 MW of potential wind power as of March 2024. (SolarQuarter)

• Installed wind capacity is already ~50–51 GW as of FY 2024-25 according to some sources. (Press Information Bureau)

• The country has developed a fairly strong domestic wind-turbine manufacturing base. (Ministry of New and Renewable Energy)

• Wind complements solar in many regions because its generation profile is different (time of day, seasons), helping balance renewables.

Other renewable sources & storage

• Biomass, small hydro, bagasse cogeneration are smaller parts of the mix—but important for distributed energy and as dispatchable renewables.

• Energy storage (battery systems), hybrid projects (solar + wind + storage), and round-the-clock contracts are increasingly being adopted. These are crucial for taking renewables from “intermittent” to a more “dispatchable” role.

What the future generation mix might look like

• More solar + wind build-out.

• More hybrid/paired systems combining renewables with storage or other firm energy sources.

• Greater penetration of renewables in states and regions previously dominated by coal.

• A shift in the generation mix away from “always-on” coal toward a diversified system where renewable power plays a dominant role during daylight/peak hours, and storage/back-up provides flexibility.

Path to India Becoming a Global Clean Energy Leader

As India accelerates green growth, several levers and case-studies are worth highlighting.

Policy & targets

• The “Panchamrit” targets laid out by the Prime Minister included achieving 500 GW non-fossil capacity by 2030, meeting 50 % of electricity requirements from non-fossil fuels, and more. (Press Information Bureau)

• The government is leveraging reverse auctions, subsidy frameworks, and other mechanisms to bring down the cost of renewable power.

• Regulatory reforms (for example in states) are making it easier for households and commercial consumers to adopt rooftop solar and net-metering.

Manufacturing & supply-chain ambition

• India is building its domestic manufacturing capacity for solar modules, wind turbines, blades, towers, gearboxes etc. This enhances local jobs, reduces import dependence, and strengthens India’s role in the global supply-chain.

• According to one recent piece, India will remain a key global wind-power export hub through 2030. (The Times of India)

Job creation & economic impact

• Clean-energy investments create jobs across construction, operations, manufacturing, maintenance, grid-modernisation.

• States like Gujarat, Rajasthan, Karnataka are turning into renewable-energy hubs, attracting both investment and skilled manpower.

Case study: Gujarat

For example, the state of Gujarat has emerged as a leader:

“Between January and September 2025, Gujarat led India in renewable energy expansion by adding 8.5 GW of capacity, the highest in the country for the period.” (The Times of India) This highlights how a state-level push, combined with manufacturing ecosystem and policy reform, can accelerate growth.

International context

India’s move to clean energy happens while other major countries recalibrate:

• As the U.S. adjusts its climate / energy strategy.

• Australia has set a 2035 deadline for its power-switch. In this context, India positioning itself as a global leader in clean energy has both symbolic and practical relevance: it shows that big developing countries can lead the low-carbon transition, not just follow.

Challenges, Risks & What to Watch

No transition is without hurdles. Let’s identify key concerns and what to look out for.

Grid integration & storage

• Variable renewables (solar, wind) require stronger grid infrastructure, forecasting, grid balancing, transmission lines, and storage solutions. If these are not managed, curtailment or instability can occur.

• For instance, a study noted that while 160 GW of solar+wind could serve ~22 % of demand, ensuring reliable supply at scale still requires grid enhancements. (nrel.gov)

Land, transmission and logistics

• Large-scale solar parks and wind farms require land and transmission corridors. Land acquisition, environmental permits, access to grid are bottlenecks.

• Tenders being undersubscribed or projects being cancelled is a risk: “the country issued 73 GW of utility-scale renewable energy tenders [in 2024] but 8.5 GW were undersubscribed due to complex tender structures and interstate transmission delays.” (Reuters)

Fossil-fuel inertia & locked-in assets

• India still has a large coal-fired fleet, and until dispatchable alternatives fully scale up, there will be inertia in the system.

• There is a risk of “stranded assets” if coal-plants live out their lives but are under-used; balancing this transition economically and socially is important.

Financing & investment

• Renewable projects often require upfront capital, and financing models must adapt (e.g., in risk, currency, interest rates).

• Domestic manufacturing ambitions need to be matched by global competitiveness to avoid cost-penalties.

Targets vs. reality

• Targets like 500 GW by 2030 are ambitious. The difference between capacity target and actual generation is crucial: capacity alone doesn’t guarantee power delivered or emissions avoided.

• Ensuring that renewable additions correspond to grid-connected, delivering projects is key.

Conclusion

India is accelerating green growth in a way few large economies are. While traditional players like the U.S. recalibrate and Australia sets ambitious deadlines, India is seizing the moment: building capacity, deploying solar and wind, and aiming for global-leadership in clean energy.

The transition from coal-dominated fossil-fuel power to a system where renewable power, solar deployment, and wind farms lead the charge is well underway. The benefits — in emissions reduction, energy security, job creation and economic leadership — are potentially immense.

Yet, success will depend on addressing the practicalities: grid integration, storage, land, financing, and ensuring that targets translate into actual clean power generation and emissions avoided. The years ahead will be critical: India’s growth path over the next decade could reshape not only its energy system, but the global clean-energy order.