India's Renewable Revolution: From Peripheral to Central

India recently met its highest-ever single-day peak power demand of 256.1 GW on April 25, with nearly one-third of the supply coming from renewable sources. As someone who has worked with India’s renewable energy sector for over three decades, I believe this achievement is especially significant because it was achieved against the backdrop of a volatile global trade landscape marked by supply disruptions, price shocks and geopolitical uncertainty.

In tandem, the country has achieved 50% non-fossil installed electricity capacity five years ahead of its Nationally Determined Contribution target under the Paris Agreement. For those of us who have watched the sector evolve over many years, this is an equally significant moment as it shows that India’s clean energy ecosystem is no longer peripheral to energy security; it is becoming central to it.

Moreover, the pace is accelerating. In the last two years, India has registered back-to-back highest-ever capacity additions in renewable energy. The country achieved over 6 GW of new wind energy capacity addition in FY 2025–26, with 6.05 GW installed during the year. This is the highest-ever annual wind capacity addition recorded by the country. At the same time, India achieved a total non-fossil capacity addition of 55.3 GW during FY 2025–26, the highest increase in any year. As a result, India today possesses the world’s third largest renewable energy capacity, with installed solar capacity expanding from just 2.8 GW a decade ago to more than 150 GW.

The country’s renewable energy journey has emerged as a global model, particularly for developing nations seeking to balance rapid economic growth with climate responsibility.

The Strategy Behind the Success

This transformation did not happen overnight. It is the outcome of a decade of sustained policy vision, reforms and transformative schemes. What began as a pioneering effort with Gujarat becoming the first state in the country to introduce a solar power policy in 2009 under then Chief Minister Narendra Modi is being implemented at unprecedented scale and speed across India.

For those closely watching India’s wind energy landscape, the shift over the last few years has been both visible and structural. The Ministry of New and Renewable Energy has played a defining role in improving sector discipline and strengthening long-term investor confidence.

MNRE’s consistent focus on wind-solar hybrid auctions, repowering of ageing wind fleets and tighter project structuring has significantly improved market stability and execution discipline. Equally important has been the government’s growing emphasis on integrated renewable energy systems combining wind, solar and large-scale energy storage. India is now increasingly moving toward round-the-clock renewable power models supported by Battery Energy Storage Systems (BESS) and pumped hydro storage, which are critical for ensuring grid stability and managing intermittency as renewable penetration rises.

The government’s emphasis on atmanirbharta in manufacturing has further strengthened this transformation. From a position of dependence with barely 2 GW of solar module manufacturing capacity a decade ago, the country has now crossed 172 GW in solar module manufacturing, representing an extraordinary 8,000% increase. Similarly, from virtually zero solar cell manufacturing capacity, India now has more than 28 GW, reflecting the strategic foresight of policy interventions over the past decade.

This manufacturing scale-up is also beginning to create a stronger domestic clean energy ecosystem spanning supply chains, component manufacturing, engineering services and long term employment generation. From an industry perspective, this is where the next big opportunity lies. India is increasingly positioning itself not only as a large renewable energy market but also as a competitive global manufacturing hub.

The sector is now also contributing meaningfully to India’s export throughput. Indian-made solar modules, inverters and renewable energy components are increasingly finding acceptance in international markets, while Indian wind turbine manufacturers are also strengthening their export presence across emerging economies. As global supply chains continue to diversify, India has a significant opportunity to emerge as a trusted clean energy manufacturing and export base for the world.

Several independent assessments have rightly observed that India has largely insulated itself from the severe energy disruptions triggered by the ongoing conflict in West Asia. This resilience is not accidental. It is the result of deliberate efforts to diversify the country’s energy mix, reduce import dependence, strengthen domestic manufacturing and accelerate renewable deployment.

As the global energy order continues to evolve, India’s renewable energy trajectory increasingly reflects more than climate ambition alone. It represents a strategic national effort toward energy independence, industrial growth, economic resilience and long-term sustainability. However, the next phase of India’s renewable energy journey will depend not only on continued capacity addition but also on strengthening grid infrastructure, scaling energy storage, accelerating domestic innovation and building globally competitive clean energy ecosystems capable of driving long-term industrial transformation.

(Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication)