India Hits 50% Non-Fossil Power Capacity, But Clean Energy Share in Supply Still Below 30%
Written By Muskan Bhushan
New Delhi: India has officially achieved a major energy transition milestone by reaching 50% of its installed power capacity from non-fossil fuel sources. However, despite this progress, clean energy accounts for less than 30% of the electricity actually supplied to the grid.
Experts point out that while India’s solar and wind infrastructure has grown rapidly in recent years, its low capacity utilisation factor (CUF) and lack of grid flexibility are slowing down its actual impact on energy supply.
“The transition is real, but its effectiveness depends on how much of that clean energy is actually used. That’s where the gap lies,” said Saurabh Kumar, Vice-President, Global Energy Alliance for People and Planet.
Installed vs. Supplied: The Real Gap
Union Minister for New and Renewable Energy Pralhad Joshi recently hailed the achievement as a “significant milestone” towards fulfilling India’s Nationally Determined Contributions (NDCs) to the Paris Agreement.
“This landmark, achieved five years ahead of target, underscores India’s commitment to sustainable development under the leadership of Prime Minister Narendra Modi,” Joshi said.
While clean energy — including solar, wind, hydro, biomass, and nuclear — now constitutes 50% of India’s installed electricity capacity (out of a total 484 GW as of June 2025), its share in actual electricity generation for the April 2024 to May 2025 period was only 28%.
In 2014-15, clean energy made up just 17% of actual generation. Over the decade, clean energy production has jumped from 190 billion units to 460 billion units, but coal continues to dominate daily base load power, supplying about 75% of the nation’s electricity.
The Problem: Lower Capacity Utilisation
The discrepancy arises primarily due to the Capacity Utilisation Factor (CUF) — a technical metric that measures how effectively installed capacity is used.
“While solar and wind make up a large part of installed capacity, they have low CUFs,” explained Arunendra Kumar Tiwari, Fellow at The Energy Resources Institute (TERI).
“Solar has a CUF of about 20%, wind around 25–30%, compared to coal at 60% and nuclear at 80%.”
In simple terms, while clean energy systems are in place, they produce less usable electricity than conventional sources like coal or nuclear, especially during non-peak sunlight or wind hours.
Solar Can’t Power the Night: Need for Storage and Flexibility
Solar energy, in particular, plays a strong role during the daytime, especially in summers. However, its utility drops to zero after sunset, pushing reliance back on fossil fuels for evening and night-time demand.
Experts stress that grid flexibility and battery storage are crucial to unlocking clean energy’s full potential.
“We need smart grids, differential pricing, and battery backups,” said Kumar.
“Just like night calls were cheaper in early telecom days, electricity tariffs can be made cheaper during solar-productive hours to encourage consumption when clean energy is abundant.”
Hybrid Projects and the Way Forward
A recent policy note from the Institute for Energy Economics and Financial Analysis (IEEFA) highlights the promise of hybrid energy projects — combining solar, wind, hydropower, and battery storage — as the key to meeting India’s round-the-clock electricity needs.
These systems allow surplus energy storage during the day and release during peak evening hours, offering better management of demand-supply cycles.
However, challenges remain:
- Land aggregation issues
- Lack of coordinated transmission planning
- High costs of battery storage components
“The technology exists, but deployment is slow,” said a senior IEEFA researcher.
“Policy incentives, financing, and land access must improve for hybrid systems to scale.”
India’s Clean Energy Snapshot (as of June 2025):
| Metric | Value |
|---|---|
| Total Installed Capacity | 484 GW |
| Non-Fossil Capacity Share | 50% |
| Actual Clean Energy Share | 28% of electricity generated |
| Clean Energy Produced (2024-25) | 460 billion units |
| Coal Share in Energy Mix | ~75% |
| CUF (Solar/Wind) | Solar ~20%, Wind ~25-30% |
| CUF (Coal/Nuclear) | Coal ~60%, Nuclear ~80% |
What Experts Recommend
To bridge the gap between installed capacity and actual utilisation, experts suggest:
- Smart Grids: For real-time demand-response and integration of renewables
- Battery Storage: To manage intermittency of solar and wind
- Dynamic Pricing: Encourage energy usage during solar-productive hours
- Policy Reforms: Clear regulations to scale hybrid and grid-scale battery projects
- Private Investment: Incentivise innovation in green tech and storage
“In the next 1–2 years, we expect significant progress with new schemes and investments,” said Kumar.
Conclusion
India’s transition to clean energy is clearly on track in terms of infrastructure, but the real challenge lies in maximising its actual usage. Bridging this gap will be key to reducing dependence on coal and achieving long-term climate goals.