India’s Role in the Global Energy Transition

Naman Chopra, Intern Reseach
India’s role in the global energy transition is pivotal, with the country setting ambitious goals to achieve sustainability and energy security. India has pledged to achieve net-zero emissions by 2070 and aims for 50% of its total energy capacity to come from renewables by 2030. This commitment underscores India’s determination to lead the way in adopting clean energy solutions and mitigating climate change.

Accelerating Clean Energy Investments

The Indian government is making significant investments in clean energy technologies such as solar power, wind energy, green hydrogen, and battery storage. In 2024, India’s renewable energy market was valued at approximately USD 24 billion and is projected to reach USD 37 billion by 2030, growing at a compound annual growth rate (CAGR) of 9% during the period 2025-30. Initiatives like the National Green Hydrogen Mission, the PM-KUSUM scheme for solar energy, and the PM Surya Ghar program, which provides free electricity to households, highlight India’s commitment to fostering a sustainable and inclusive energy future.

Evolving Energy Policies and Infrastructure

India’s energy transition is supported by progressive policies aimed at scaling up clean energy adoption. The government is focusing on electric vehicle (EV) deployment, green hydrogen production, and advanced energy storage technologies. A key target is achieving 47 gigawatts (GW) of battery storage capacity by 2031-32, alongside building a robust energy grid. The Ministry of Power has formed a dedicated committee to develop a transmission system capable of integrating over 500 GW of renewable energy by 2030. This includes enhancing infrastructure with 8,120 circuit kilometers of High Voltage Direct Current (HVDC) corridors and 51.5 GW of battery energy storage capacity, supported by an estimated investment of INR 2.44 lakh crore (approximately USD 29 billion).

Remarkable Growth in Renewable Energy Capacity

India’s renewable energy sector has witnessed extraordinary growth. The total installed renewable energy capacity surged from 178.98 GW in October 2023 to 203.18 GW in October 2024, an impressive increase of 24.2 GW (13.5%) within a year. Solar power leads this expansion, accounting for 16.9% of the total installed power capacity and 40.1% of the total renewable capacity as of December 2023. This marks a steady rise from the previous quarter when solar energy comprised 39.5% of the renewable mix.

Hydropower is also gaining momentum, with 15 GW of new hydroelectric capacity under construction. By 2031-32, India’s hydroelectric capacity is expected to grow from 42 GW to 67 GW, bolstered by favorable rainfall forecasts and proactive government policies. Additionally, India’s wind energy sector continues to thrive, ranking fourth globally in wind power capacity as of 2023.

Global Renewable Energy Market Trends

The global renewable energy market has been witnessing remarkable growth. In 2022, the market was valued at approximately USD 0.90 trillion and is projected to reach USD 2.06 trillion by 2032, growing at a compound annual growth rate (CAGR) of 8.6% from 2023 to 2032. This rapid expansion reflects the increasing global emphasis on sustainability and the transition to cleaner energy sources.

India’s Global Standing and Future Projections

India is recognized as one of the fastest-growing markets for renewable electricity, with new capacity additions expected to double by 2026. The country’s renewable energy installed capacity achieved a compound annual growth rate (CAGR) of 15.4% between FY16 and FY23, reaching 125.15 GW in FY23. By March 2025, installed renewable energy capacity is expected to increase to approximately 170 GW, reflecting India’s rapid progress in clean energy deployment.

Conclusion

India’s energy transition is a testament to its commitment to a sustainable future. Through targeted investments, supportive policies, and international collaboration, India is not only meeting its domestic energy needs but also setting an example for global green energy leadership. With robust infrastructure development and continued innovation, India is well-positioned to play a crucial role in shaping the global energy landscape.