A. Issue in Brief
- India added 52,537 MW generation capacity in FY 2025–26 (till Jan 31) — highest-ever annual addition, surpassing previous record 34,054 MW (FY 2024–25).
- Addition equals ~11% increase over last year’s base capacity, indicating accelerated infrastructure build-out.
- 39,657 MW (≈75%) of new capacity from renewables, led by 34,955 MW solar and 4,613 MW wind.
- India’s total installed capacity now at 5,20,510.95 MW (≈520.5 GW), reflecting rapid energy-sector expansion.
Relevance
- GS-III (Infrastructure & Energy)
- Power sector, renewable transition
- Grid stability and storage
- GS-III (Environment)
- Climate commitments (Panchamrit)
- Decarbonisation pathway
B. Static Background
India’s Power Mix – Structural Context
- Current installed capacity share:
- Renewables (incl. large hydro): ~50.5% (2,63,189 MW)
- Fossil fuels: ~48% (2,48,541 MW)
- Nuclear: ~1.6% (8,780 MW)
- India is the 3rd-largest electricity producer and consumer globally (IEA).
- Electricity demand growing ~6–7% annually due to urbanisation, EVs, cooling demand, and industrial growth.
Policy Framework Driving Growth
- National Electricity Plan (CEA) projects ~900 GW capacity by 2032 to meet demand and climate goals.
- Panchamrit commitments (COP26):
- 500 GW non-fossil capacity by 2030
- 50% energy from renewables
- Net Zero by 2070
- Key schemes:
- PLI for solar modules
- Green Energy Corridor
- PM Surya Ghar Rooftop Solar
- ISTS charge waivers for renewables
C. Key Dimensions
1) Solar Dominance
- 34,955 MW solar added in one year:
- Nearly equals total solar capacity addition of many countries annually.
- India already among top 5 global solar markets.
- Falling solar tariffs:
- Utility-scale tariffs reached ₹2–2.5/unit range in recent bids, improving competitiveness.
2) Wind Sector
- 4,613 MW wind addition shows revival after slow years.
- Offshore wind policy and hybrid projects (solar-wind-storage) gaining traction.
3) Energy Transition Signal
- Renewables now largest share in installed capacity, a structural shift from coal dominance a decade ago.
- In 2014:
- Renewables share was ~30% or less (including hydro).
- Coal dominated >60%.
4) Grid & Storage Implications
- Higher RE penetration requires:
- Battery Energy Storage Systems (BESS)
- Pumped hydro
- Smart grids
- CEA estimates India may need ~27 GW storage by 2030.
D. Critical Analysis
Opportunities
- Reduces fossil import bill:
- India imports ~85% of crude oil and significant coal.
- Supports climate diplomacy credibility.
- Creates green jobs:
- Solar & wind sectors labour-intensive in installation phase.
Challenges
- Installed capacity ≠ actual generation:
- Coal still provides ~70% of actual electricity generation due to higher PLFs.
- Land acquisition and transmission bottlenecks slow RE deployment.
- DISCOM financial stress affects payment security to RE developers.
E. Way Forward
- Accelerate storage deployment for grid stability.
- Reform DISCOMs under RDSS scheme for financial viability.
- Promote domestic manufacturing of modules, cells, and batteries.
- Integrate green hydrogen with renewable growth.
- Strengthen interstate transmission for RE-rich states.
F. Exam Orientation
Prelims Pointers
- India = 3rd largest power producer globally.
- 500 GW non-fossil target by 2030.
- Renewables now >50% of installed capacity.
- Nuclear share ~1–2%.
Mains Practice Question (15M)
- “India’s rapid renewable capacity addition is transforming its energy landscape, but structural challenges remain.”Examine.
