Home India Ministry of Power Non Fossil Fuels Contribute More than Half, as Total Install...
Date: 2025-12-18 Category: Press Release State: Union Government Country: India

Non Fossil Fuels Contribute More than Half, as Total Installed Power Generation Capacity Reaches 505 GW

Issued by Ministry of Power · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** As of October 31, 2025, India's total installed power generation capacity is 505.023 GW, with non-fossil fuels comprising more than half. The Government of India has initiated several steps to reach 500 GW of non-fossil fuel energy capacity by 2030. A target of 100 GW nuclear power capacity by 2047 has been set, and the Renewable Consumption Obligation (RCO) trajectory has been notified till 2029-30. **Key Points / Main Content** **Renewable Energy Initiatives:** * Inter-State Transmission System (ISTS) charges are waived for interstate sale of solar and wind power for projects commissioned by June 30, 2025, Green Hydrogen Projects till December 2030 and offshore wind projects till December 2032. * Standard Bidding Guidelines for tariff-based competitive bidding have been issued for Grid Connected Solar, Wind, Wind-Solar Hybrid, and Firm & Dispatchable RE projects. * The Ministry of New & Renewable Energy (MNRE) has issued a bidding trajectory for issuing RE power procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28. * 100% Foreign Direct Investment (FDI) is permitted under the automatic route. * New transmission lines and sub-station capacity funded under the Green Energy Corridor Scheme. * A transmission plan to augment infrastructure for a steep RE trajectory has been prepared till 2032. * Schemes are being implemented to provide land and transmission to RE developers for large-scale installations. * Schemes such as PM-KUSUM and the National Green Hydrogen Mission have been launched. * The Renewable Purchase Obligation (RPO) / Renewable Consumption Obligation (RCO) trajectory has been notified until 2029-30 and RCO includes specified quantity of consumption from Decentralized Renewable Energy sources. * A strategy for establishing offshore wind energy projects and a Production Linked Incentive (PLI) scheme for High-Efficiency Solar PV Modules have been issued. **Nuclear Energy Development:** * 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. * The Sustainable Harnessing and Advancement of Nuclear energy for Transforming India (SHANTI) Bill, 2025 has been introduced in Parliament. * Bharat Small Reactors (BSRs) of 220 MW capacity are being upgraded and BARC is developing Small Modular Reactors for repurposing retiring coal stations and remote-area applications. * India's fuel security is being enhanced through uranium discoveries. * NPCIL and NTPC have formed the joint venture ASHVINI for developing nuclear power plants. **Battery Energy Storage and Other Initiatives:** * Viability Gap Funding (VGF) schemes have been approved for the development of Battery Energy Storage Systems (BESS), including 13.22 GWh of BESS capacity under implementation and another scheme for 30 GWh. * A policy has been introduced to promote Pumped Storage Projects (PSPs), with 10 projects totaling 11,870 MW under construction. * A Viability Gap Funding will be provided for harnessing offshore wind energy potential for an initial capacity of one giga-watt. * The Green Hydrogen Mission targets setting up at least 5 MMT per annum of green hydrogen capacity by 2030. **Installed Capacity Composition (as of 31.10.2025):** * Total Installed Capacity: 505,023 MW * Fossil Fuels: 245,600 MW (48.6%) * Non-Fossil Fuels: 259,423 MW (51.37%) **Impact Analysis** **Renewable Energy Implementing Agencies (REIAs)** * **Impact:** Responsible for issuing RE power procurement bids. * **Action Required:** Issue bids for 50 GW/annum of RE power from FY 2023-24 to FY 2027-28. **Renewable Energy Developers:** * **Impact:** Benefit from land and transmission provisions for large-scale projects and incentives for new technology adoption. * **Action Required:** Plan and execute large-scale RE projects. **Energy Consumers (Designated Consumers under the Energy Conservation Act 2001)** * **Impact:** Obligated to consume a specified quantity of renewable energy. * **Action Required:** Comply with the RCO trajectory until 2029-30, including decentralized renewable energy sources, or face penalties.

Key Entities Referenced

Ministry of Power: Indian governmental body responsible for the development and regulation of the power sector. Ministry of New & Renewable Energy (MNRE): Indian governmental body responsible for all matters relating to new and renewable energy. Green Energy Corridor Scheme: Scheme to evacuate renewable power. Renewable Purchase Obligation (RPO): A mechanism by which the electricity distribution companies are obligated to purchase electricity from renewable energy sources. Energy Conservation Act 2001: An act to provide for efficient use of energy and its conservation and for matters connected therewith or incidental thereto.
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Ministry of Power Non Fossil Fuels Contribute More than Half, as Total Installed Power Generation Capacity Reaches 505 GW Initiatives Taken to Realise 500 GW Non-Fossil Fuel Energy Capacity by 2030 प्रव तथ: 18 DEC 2025 4:37PM by PIB Delhi As on 31.10.2025, the country’s total installed generation capacity has reached 5,05,023 MW, comprising of 2,45,600 MW of fossil-fuel sources and 2,59,423 MW of non-fossil fuel sources (including 2,50,643 MW from renewable energy sources). The details of country's current composition of installed generation capacity, indicating the share of renewable and non-fossil fuel sources are given below. The Government of India has taken several steps and initiatives to promote and accelerate renewable energy capacity in the country to realize the commitment of 500 GW non-fossil energy capacity by 2030. These include, inter-alia, the following: Inter State Transmission System (ISTS) charges have been waived for inter-state sale i. of solar and wind power for projects to be commissioned by 30th June 2025, for Green Hydrogen Projects till December 2030 and for offshore wind projects till December 2032. Standard Bidding Guidelines for tariff based competitive bidding process for ii. procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE (FDRE) projects have been issued. Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for iii. 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) has been permitted up to 100 percent under the iv. automatic route. Laying of new transmission lines and creating new sub-station capacity has been v. funded under the Green Energy Corridor Scheme for evacuation of renewable power To augment transmission infrastructure needed for steep RE trajectory, transmission vi. plan has been prepared till 2032. Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being vii. implemented to provide land and transmission to RE developers for installation of RE projects at large scaleSchemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan viii. (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 To boost RE consumption, Renewable Purchase Obligation (RPO) followed by ix. 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. “Strategy for Establishments of Offshore Wind Energy Projects” has been issued. x. To achieve the objective of increased domestic production of Solar PV Modules, the xi. Govt. of India is implementing the Production Linked Incentive (PLI) scheme for High Efficiency Solar PV Modules. 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. 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 major steps taken by India to diversify its Energy Portfolio through clean and safe sources are detailed below: Nuclear power has huge potential to ensure long term energy security and is vital for 1. 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. Sustainable Harnessing and Advancement of Nuclear energy for Transforming ii. India (SHANTI) Bill, 2025 has been introduced in Parliament to pave a way to harness the full potential of India’s nuclear energy based on indigenous resources to the maximum extent through active involvement of both the public and private sectors.Bharat Small Reactors (BSRs) of 220 MW capacity based on India’s proven iii. Pressurized Heavy Water Reactor (PHWR) technology are being upgraded for deployment in industrial hubs to support decarbonisation. BARC is also developing Small Modular Reactors for repurposing retiring coal stations and for remote-area applications. India’s fuel security is being enhanced through new uranium discoveries, iv. 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. To accelerate capacity addition, NPCIL and NTPC have formed the joint venture v. ASHVINI for developing nuclear power plants within the existing legal framework. Government of India, in September 2023, approved a Viability Gap Funding (VGF) scheme 2. 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). Ministry of Power has introduced a policy to promote Pumped Storage Projects (PSPs) to 3. support renewable energy integration and grid stability. At present, 10 Pumped Storage Projects totaling 11,870 MW are under construction in the country. Strategy for Establishments of Offshore Wind Energy Projects has been issued. Viability gap 4. funding will be provided for harnessing offshore wind energy potential for initial capacity of one giga-watt. Green Hydrogen Mission would contribute significantly to India’s efforts for 5. decarbonization 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 details of the country's current composition of installed generation capacity Installed Generation Capacity of the country as on 31.10.2025 Category Installed Capacity (in MW) % Share in TotalFossil Coal 2,18,258 Fuel Lignite 6,620 Gas 20,132 Diesel 589 Total Fossil Fuel 2,45,600 48.6 Non- Renewable Energy Sources 2,50,643 49.6 Fossil Fuel Hydro (including PSPs) 50,348 Wind, Solar & Other RE 2,00,295 Wind 53,600 Solar 1,29,924 BM Power/Cogen. 10,757 Waste to Energy 856 Small Hydro 5,159 Nuclear 8,780 1.74 Total Non-Fossil Fuel 2,59,423 51.37 Total Installed Capacity 5,05,023 100.0% This Information was given by the Minister of State for Power, Shri Shripad Yesso Naik, in a written reply in the Lok Sabha today. ********* NR/MD (रलीज़ आईडी: 2205960) आगंतुक पटल : 1183 इस वज्ञ को इन भाषाओ ंम पढ़: ही

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