India Installs Record 22 GW RE Capacity in H1 2025

India added a record 22 gigawatts (GW) of renewable energy capacity in the first half of 2025, marking a 57 per cent increase from the 14.2 GW installed in the same period last year.

Of the total, 18.4 GW came from solar installations, followed by 3.5 GW of wind and 250 megawatts (MW) of bioenergy. This is the highest-ever renewable capacity addition for any six-month period in the country. The growth was driven by developers rushing to capitalize on the Interstate Transmission System (ISTS) charge waiver, which starts at 25 per cent and increases annually until full implementation in June 2028.

With this, India’s total installed renewable energy capacity, including large hydropower, has reached 234 GW. However, fossil fuels continued to account for around 75 per cent of the electricity generated in the first half of 2025, the report noted.

“India installed 22 GW of renewable energy capacity in the first half of 2025, a new record. However, the country is still banking heavily on coal to meet growing power demand, with plans to install an additional 80 GW of new thermal projects. India is not yet undergoing a true energy transition; instead, it is focusing on building up installed capacity from both conventional and renewable energy sources to ensure energy security.

Without urgent action to improve affordability and sustainability, particularly through grid upgrades and energy storage, coal will remain central to electrification efforts, jeopardizing progress toward India’s net-zero goals,” said Sushma Jagannath, Vice President of Renewables and Power Research at Rystad Energy.