⚡ India’s Clean Energy Milestone: 50% Installed Capacity from Non-Fossil Sources

For UPSC Aspirants | By Suryavanshi IAS

Why in News?

India has achieved a significant milestone in its energy transition by reaching 50% of its installed electricity capacity (~484 GW) from non-fossil fuel sources, five years ahead of its Nationally Determined Contributions (NDCs) target under the Paris Agreement.

🚨 However, actual electricity generated from clean sources is only ~28%, raising questions about utilisation, storage, and grid flexibility.

Key Definitions for UPSC

Concept	Definition
Installed Capacity	The maximum electricity a source could produce if run at full capacity.
Clean Energy / Non-Fossil Energy	Includes solar, wind, hydro (large & small), biomass, and nuclear power.
Capacity Utilisation Factor (CUF)	The ratio of actual electricity generated to the maximum possible output in a given time.
Base Load Power	Power needed continuously throughout the day, mostly supplied by coal or nuclear.
Smart Grid	An advanced electricity network that uses digital tech for real-time monitoring and efficient transmission/distribution.
Hybrid Power Project	Combines multiple sources (like solar + wind + battery storage) to supply round-the-clock energy.

Key Data (Prelims Ready)

Metric	Value
Total Installed Capacity (June 30, 2025)	~484 GW
Installed Capacity from Non-Fossil Sources	50%
Electricity Generated from Non-Fossil Sources (2024-25)	~28%
CUF of Solar	~20%
CUF of Wind	~25–30%
CUF of Coal	~60%
CUF of Nuclear	~80%
Clean Energy Generated in 2014-15	190 Billion Units
Clean Energy Generated in 2024-25	460 Billion Units

📈 Progress Since 2014

In 2014, clean energy share in installed capacity = 30%
In 2025, clean energy share = 50%
But actual supply share = only 28%

⚠ Why this mismatch?

Because of low CUF and lack of storage & grid management.

⚡ Challenges in India’s Energy Transition

Challenge	Explanation
⚡ Low CUF	Solar & wind depend on weather; unlike coal/nuclear, they can't run 24/7.
🔋 Lack of Storage	Battery technology is costly, and India lacks scale infrastructure.
🔌 Grid Inflexibility	Our grid doesn’t adjust dynamically to a variable power supply.
🏗 Land & Planning Issues	Hybrid projects need large land areas and coordinated transmission plans.
💰 Uniform Tariffs	No time-of-use pricing; consumers pay the same rate at night & day.

🔄 Solutions & Way Ahead

1. 🔋 Battery Storage Boost

Store surplus solar in daytime → release at night
Encourages round-the-clock green power

2. 💡 Smart Grids & Time-of-Use Tariffs

Daytime electricity can be cheaper → shifts usage from coal-dependent evenings
Needs policy support + digital tech

3. 🌞 Hybrid Projects

Mix of solar + wind + storage → more reliability
E.g.: Gujarat and Rajasthan exploring solar-wind-battery plants

4. 🔍 Policy Reforms

Land pooling reforms
Faster transmission corridor development
Production-linked incentives (PLI) for battery manufacturing

🌍 India’s NDC Commitment under the Paris Agreement

Target:

50% installed capacity from non-fossil fuels by 2030
✅ Achieved in 2025
Reduce emissions intensity of GDP by 45% (compared to 2005 levels)

🌿 AI, Innovation & India's Energy Roadmap

Experts highlight AI's role in predicting energy demand, solar forecast, and optimising grid management.

But a reality check is needed to avoid over-reliance on technology without fixing ground challenges like land, cost, and regulation.

🔁 UPSC Previous Year Questions (PYQs)

✅ Prelims 2020

Q. In the context of electricity production in India, consider the following statements:

Renewable energy accounts for more than 15% of the total installed capacity in India.
Nuclear energy accounts for less than 10% of the total installed capacity.

Which of the statements given above is/are correct?

Answer: ✅ Both 1 and 2

✅ Mains GS Paper III – 2021

Q. What are the main constraints in the transport and storage of renewable energy in India? How can these be overcome?

📌 Approach:

Explain the variability of solar/wind
Lack of grid flexibility, storage infra, transmission gaps
Suggest battery R&D, hybrid systems, smart metering, and differential pricing

📚 Mains Practice Question

Q. India has reached the milestone of sourcing 50% of its installed electricity capacity from non-fossil fuel sources, yet the actual supply from clean sources remains below 30%. Critically examine the reasons for this mismatch and suggest measures to improve clean energy utilisation. (250 words)

🧠 Mind Map: India’s Energy Transition


                  [India's Clean Energy Milestone]
                             |
    ---------------------------------------------------
    |                       |                         |
[Installed Capacity]   [Actual Generation]     [Policy & Tech]
    |                       |                         |
50% from Clean Sources   <30% from Clean     Smart Grids, Storage,
(2025)                    Energy (CUF gap)    Hybrid Models, AI

📝 Key Takeaways for UPSC Aspirants

Understand the difference between installed capacity vs actual generation
Know the CUF concept and why it matters in renewable energy
Link clean energy progress to India’s global commitments (NDCs, Paris Agreement)
Anticipate UPSC questions in GS II (environmental governance) and GS III (energy sector, infrastructure, climate change)

Suryavanshi IAS

Wednesday, July 16, 2025