**Executive Summary**
The Ministry of Power report, posted on February 5, 2026, details India's progress and strategies toward achieving 500 GW of non-fossil fuel capacity by 2030 and Net Zero emissions by 2070. It highlights that India achieved 50% installed electricity capacity from non-fossil fuel sources in June 2025, exceeding its Paris Agreement targets. The document presents initiatives undertaken to promote renewable energy and diversify the energy portfolio.
**Key Points / Main Content**
* **Installed Capacity (as of December 31, 2025):**
* Total installed generation capacity is 5,13,730 MW.
* Fossil fuel sources: 2,46,942 MW (48.07%).
* Non-fossil fuel sources: 2,66,788 MW (51.93%).
* **Renewable Energy Initiatives:**
* 100% Inter State Transmission System (ISTS) charges waived for interstate sale of solar and wind power projects commissioned by June 30, 2025, tapering off annually until June 2028. Waivers also apply to co-located BESS, Hydro PSP, Green Hydrogen, and offshore wind projects with varying commission deadlines.
* Standard Bidding Guidelines issued for tariff-based competitive bidding for power procurement from various renewable energy projects.
* Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for issuance of RE power procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
* Foreign Direct Investment (FDI) permitted up to 100% under the automatic route.
* Laying of new transmission lines and sub-station capacity supported under the Green Energy Corridor Scheme.
* Transmission plan prepared until 2032 to augment transmission infrastructure for renewable energy.
* Scheme for setting up Solar Parks and Ultra Mega Solar Power projects is being implemented.
* Various schemes launched, including PM-KUSUM, PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, National Green Hydrogen Mission, and Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects.
* Viability Gap Funding (VGF) scheme for Battery Energy Storage Systems (BESS) approved. Capacity of 13.22 GWh is under implementation with a budgetary allocation of Rs 3,760 Cr. Additional VGF scheme approved for development of 30 GWh BESS capacity with Rs 5,400 Cr financial support.
* Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory notified until 2029-30.
* "Strategy for Establishments of Offshore Wind Energy Projects” has been issued.
* Production Linked Incentive (PLI) scheme implemented to increase domestic production of Solar PV Modules.
* Hydro Electric Projects with 12,973.5 MW under construction and additional 4,274 MW targeted for completion by 2031-32.
* Ministry of Power promoting Pumped Storage Projects (PSPs) with 10 projects totaling 11,870 MW under construction.
* **Nuclear Energy Initiatives:**
* Government target of 100 GW nuclear power capacity by 2047.
* Dedicated Nuclear Energy Mission launched with ₹20,000 crore allocation to develop at least five indigenously designed Small Modular Reactors (SMRs) by 2033.
* Sustainable Harnessing and Advancement of Nuclear energy for Transforming India (SHANTI) Act, 2025 enacted to harness nuclear energy based on indigenous resources.
* Bharat Small Reactors (BSRs) of 220 MW capacity are being upgraded.
* Joint venture ASHVINI formed by NPCIL and NTPC to develop nuclear power plants.
* **Green Hydrogen Mission:**
* The National Green Hydrogen Mission aims to set up at least 5 MMT per annum of green hydrogen capacity by 2030.
**Impact Analysis**
**Government of India (Ministry of Power, MNRE, etc.):**
* **Impact:** Responsible for implementing and monitoring the various schemes and initiatives to achieve renewable energy targets and promote nuclear energy development.
* **Action Required:** Continue policy support, financial incentives, and infrastructure development to facilitate the growth of renewable and nuclear energy sectors.
**Renewable Energy Developers/Implementing Agencies (REIAs):**
* **Impact:** Benefit from the favorable policies, incentives, and streamlined bidding processes for renewable energy projects.
* **Action Required:** Participate in bidding processes, develop renewable energy projects, and comply with the relevant regulations and guidelines.
**Power Generation Companies (NTPC, NPCIL, etc.):**
* **Impact:** Need to diversify their energy portfolio by investing in renewable and nuclear energy projects.
* **Action Required:** Plan, develop, and operate renewable and nuclear power plants to meet the increasing demand for clean energy.
**Consumers (Designated Consumers under the Energy Conservation Act 2001):**
* **Impact:** Subject to Renewable Consumption Obligation (RCO) and may face penalties for non-compliance.
* **Action Required:** Increase the consumption of renewable energy sources and comply with the RCO requirements.
**Public and Private Sectors:**
* **Impact:** Potential active involvement in harnessing the potential of India's nuclear energy based on indigenous resources.
* **Action Required:** Support the development and advancement of nuclear technologies.
Key Entities Referenced
500 GW non fossil capacity by 2030, Net Zero Emissions by 2070: The government's initiative to reach 500 GW non-fossil fuel capacity by 2030 and net-zero emissions by 2070.
Ministry of Power: The central ministry responsible for initiating steps to promote Pumped Storage Projects (PSPs) to support renewable energy integration and grid stability.
Renewable Purchase Obligation (RPO): A regulation to boost RE consumption, followed by Renewable Consumption Obligation (RCO) trajectory.
SHANTI Act, 2025: Sustainable Harnessing and Advancement of Nuclear energy for Transforming India Act to harness the potential of India's nuclear energy.
National Green Hydrogen Mission: A mission to contribute significantly to India's efforts for de-carbonization and also create opportunities for employment and economic development, targeting at least 5 MMT per annum of green hydrogen capacity by 2030.
Ministry of Power
Non-Fossil Fuel Share In Total Installed Power
Capacity
500 GW non fossil capacity by 2030, Net Zero Emissions by
2070
Posted On: 05 FEB 2026 2:35PM by PIB Delhi
The details of installed generation capacity in September 2025, at the time of achievement of 500 GW, and
the installed generation capacity as on 31.12.2025, indicating the percentage share of fossil and non fossil
fuel sources, are given in Table A. As on 31.12.2025 the total installed generation capacity is 5,13,730
MW, comprising of 2,46,942 MW (48.07 %) of fossil-fuel sources and 2,66,788 MW (51.93 %) of non-
fossil fuel sources.
India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity
capacity from non-fossil fuel sources in June, 2025 – more than five years ahead of the target set under
its Nationally Determined Contributions (NDCs) to the Paris Agreement. This significant milestone
underscores the country’s steadfast commitment to climate action and sustainable development.
During 2025, a total of 48,436 MW Renewable energy capacity has been added. This includes 37,945 MW
of Solar power and 6,347 MW of Wind power. The details of the renewable energy capacity additions
during 2025 are given in Table B.
The details of initiatives undertaken by the Government of India to achieve 500 GW non fossil capacity by
2030 and the strategy for attaining Net Zero emissions by 2070 are as follows:
1. The Government of India has taken several steps and initiatives to promote and accelerate
renewable energy capacity in the country. These, inter-alia, include the following:
2. 100% Inter State Transmission System (ISTS) charges have been waived for inter-state sale of
solar and wind power for projects to be commissioned by 30th June 2025 (with waiver
tapering off 25% annually till June 2028), for co-located BESS projects commissioned by
June 2028, for Hydro PSP projects where construction work is awarded by June 2028, for
Green Hydrogen Projects commissioned till December 2030 and for offshore wind projects
commissioned till December 2032.
ii. Standard Bidding Guidelines for tariff based competitive bidding process for procurement of
Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE
(FDRE) projects have been issued.
iii. Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for issuance of
RE power procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies
(REIAs) from FY 2023-24 to FY 2027-28.
iv. Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic
route.v. Laying of new transmission lines and creating new sub-station capacity has been supported
under the Green Energy Corridor Scheme for evacuation of renewable power
vi. To augment transmission infrastructure needed for steep RE trajectory, transmission plan has
been prepared till 2032.
vii. Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being
implemented to provide land and transmission to RE developers for installation of RE
projects at large scale
viii. Schemes such as Pradhan Mantri KisanUrjaSurakshaevamUtthaanMahabhiyan (PM-
KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar
PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha
Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability
Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been launched
ix. Government of India, in September 2023, approved a Viability Gap Funding (VGF) scheme
for development of Battery Energy Storage Systems (BESS). BESS capacity of 13.22 GWh is
under implementation with a budgetary allocation of Rs 3,760 Cr. under this scheme.
Considering the increasing demand of BESS, Ministry of Power, in June 2025, has approved
another VGF scheme for development of 30 GWh BESS capacity with a financial support of
Rs 5,400 Cr from Power System Development Fund (PSDF).
x. To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable
Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO which is
applicable to all designated consumers under the Energy Conservation Act 2001 will attract
penalties on non-compliance. RCO also includes specified quantum of consumption from
Decentralized Renewable Energy sources.
xi. “Strategy for Establishments of Offshore Wind Energy Projects” has been issued.
xii. To achieve the objective of increased domestic production of Solar PV Modules, the Govt. of
India is implementing the Production Linked Incentive (PLI) scheme for High Efficiency
Solar PV Modules.
xiii. 12,973.5 MW of Hydro Electric Projects are under construction. Further, 4,274 MW of
Hydro Electric Projects are under various stage of planning and targeted to be completed by
2031-32
xiv. Ministry of Power has initiated the steps to promote Pumped Storage Projects (PSPs) to
support renewable energy integration and grid stability. At present, 10 Pumped Storage
Projects totaling 11,870 MW are under construction in the country.
xv. Further, Nuclear power has huge potential to ensure long term energy security and is vital for
India’s clean energy transition towards Net Zero by 2070. It is a clean and environment
friendly source of base load power. The lifecycle emissions of nuclear power are comparable
to those of renewables like hydro and wind. The Government of India has set an ambitious
target of 100 GW nuclear power capacity by 2047. Following steps have been taken to
diversify India’s energy portfolio through Nuclear Energy:
i. A dedicated Nuclear Energy Mission with an allocation of ₹20,000 crore has been
launched to develop at least five indigenously designed Small Modular Reactors
(SMRs) by 2033 and promote advanced nuclear technologies.
ii. Sustainable Harnessing and Advancement of Nuclear energy for Transforming India
(SHANTI) Act, 2025 has been enacted to pave a way to harness the potential of India’s
nuclear energy based on indigenous resources to the maximum extent through active
involvement of both the public and private sectors.iii. Bharat Small Reactors (BSRs) of 220 MW capacity based on India’s proven
Pressurized Heavy Water Reactor (PHWR) technology are being upgraded for
deployment in industrial hubs to support de-carbonization. BARC is also developing
Small Modular Reactors.
iv. India’s fuel security is being enhanced through new uranium discoveries, including a
significant discovery that would extend the life of the Jaduguda mine by over 50 years.
Progress in the closed fuel cycle, such as milestones achieved in the Prototype Fast
Breeder Reactor, will further support sustainable fuel supply.
v. To accelerate capacity addition, NPCIL and NTPC have formed the joint venture
ASHVINI for developing nuclear power plants within the existing legal framework.
2. The National Green Hydrogen Mission would also contribute significantly to India’s efforts for de-
carbonization and also create opportunities for employment and economic development. The
Mission targets setting up at least 5 MMT per annum of green hydrogen capacity by 2030.
The impact of this achievement on India’s long term energy transition roadmap is crucial towards the
goal of combating climate change, keeping in view energy security, affordability and accessibility as
critical inalienable priorities to ensure growth and development alongside Energy transition of the
economy towards net-zero by 2070.
The details of country's of installed generation capacity, indicating the share of renewable and non-fossil
fuel sources, percentage-wise, in September 2025 and December 2025
TABLE-A
Installed Capacity (in MW) of the Country
as on 30.09.2025 as on 31.12.2025
Category Installed % Share Installed % Share
Capacity (MW) in Total Capacity (MW) in Total
Fossil Coal 2,17,458 43.41% 2,19,610 42.75%
Fuel
Lignite 6,620 1.32% 6,620 1.29%
Gas 20,132 4.02% 20,122 3.92%
Diesel 589 0.12% 589 0.11%
Total Fossil Fuel 2,44,800 48.87% 2,46,942 48.07%Non- RES (including Hydro) 2,47,310 49.37% 2,58,008 50.22%
Fossil
Fuel Hydro (including PSPs) 50,108 10.00% 50,915 9.91%
Wind, Solar & Other 1,97,201 39.37% 2,07,093 40.31%
RE
Wind 53,124 10.61% 54,511 10.61%
Solar 1,27,332 25.42% 1,35,810 26.44%
BM* Power/Cogen. 10,757 2.15% 10,757 2.09%
Waste to Energy 854 0.17% 857 0.17%
Small Hydro 5,134 1.02% 5,159 1.00%
Nuclear 8,780 1.75% 8,780 1.71%
Total Non-Fossil Fuel 2,56,090 51.13% 2,66,788 51.93%
Total Installed Capacity 5,00,889 100.0% 5,13,730 100.0%
*Biomass
The details of the renewable energy capacity additions during 2025
TABLE-B
All figures in MW
As Small Wind Bio-Power Solar Large Total RES
on Hydro Power Power Hydro
Power Bio Mass Waste to
Power/Cogeneration Energy
2025 58.06 6,347.77 29.10 236.68 37,945.22 3,820.00 48,436.83
(Jan-
Dec)
RES: Renewable Energy Sources
This Information was given by The Minister of State in the Ministry of Power, Shri Shripad Naik, in a
written reply in the Lok Sabha today.
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